Digital tools overtake regulated advice for pre-retirement planning

Half of UK adults aged 55-70 who are considering retirement within the next five years plan to use their pension provider's website or app as a primary source when making retirement planning decisions, according to research from pensions administration firm Aptia.

The findings, published during Pensions Awareness Week, are based on a survey of 500 UK adults aged 55-70, split equally between recent retirees already receiving a pension from a previous employer and those planning to retire within five years. The sample size should be noted when interpreting the results.

Digital engagement with retirement planning is rising sharply across generations. While 29% of recent retirees used their provider's website or app when making retirement decisions, that figure doubles to 50% among those approaching retirement, and rises further to 60% for the 55-59 age group specifically.

Regulated financial advice features less prominently in the planning mix. Only 16% of those approaching retirement plan to use professional regulated advice, behind provider information packs at 34%, direct contact with their provider at 29% and friends and family at 22%.

The research also found that a quarter of retirees had turned to social media or websites for retirement information. Aptia's figures group social media alongside government-backed guidance services such as MoneyHelper and Pension Wise in this category, which limits the ability to draw conclusions about unregulated social media use specifically.

Sue Doughty, UK head of pensions administration at Aptia, said: "The decisions people make at retirement can have a significant impact on their long-term financial wellbeing, and so it's encouraging to see that people are actively seeking guidance and information as they prepare for this important stage in their life.

"Future retirees are placing greater value on digital retirement planning tools, but our research shows there is no 'one-size-fits-all' approach. If members can't access the support they need, they are increasingly likely to turn to unregulated sources such as social media. That's why trustees should review the support they provide and consider offering both a strong digital experience and access to expert guidance."