Pension Warning: Experts Say Brits Should Plan for Retirement Sooner

People in the United Kingdom are being warned to start planning for retirement much earlier than they currently do. A new survey found that about one in three workers over the age of 50 still haven't decided how they will use their pension savings. Experts say that waiting too long to make these decisions can mean missing out on important choices about the future.

The research was done for a company called Scottish Widows. It showed a big difference between how much men and women know about their retirement options. Almost half of women over 50 — about 46% — said they had little or no understanding of their choices, compared to about 35% of men.

Most people over 50 said getting help before touching their pension savings is important. More than four out of five people, or 81%, agreed that support was needed before making big decisions. However, nearly one in five people said they plan to only look for advice during the actual year they retire, which experts say is too late.

There are several free resources available to help people plan. The UK government runs a service called Pension Wise, which offers free guidance to people thinking about retirement. The government's MoneyHelper website also has helpful tools and guides that anyone can use to better understand their options.

Pension companies sometimes offer retirement calculators on their websites, too. These tools can help a person figure out if they are saving enough money. Another resource is Pension UK's retirement living standards page, which gives people a general idea of how much money they might need to live comfortably in retirement.

Carolyn Jones, the retirement director at Scottish Widows, said the whole conversation about retirement needs to start sooner. She explained that too many people only really start thinking about retirement when they are very close to it, which means they miss chances to plan properly. She said, 'Engage earlier, understand your options and seek advice sooner.'

Jones also pointed out that the earlier someone thinks about what kind of life they want in retirement, the more choices they will have. She said that planning ahead gives people more confidence to reach their goals. The industry is working on new tools like digital advice and workplace education to help people make better decisions.

The survey was carried out by a research company called YouGov. More than 6,200 adults took part in one part of the survey, and another 1,000 adults across the UK were surveyed separately in February. In total, more than 2,300 people aged over 50 shared their views.