Majority of over 55s 'know little about pension freedoms'

A further 10% say they know nothing about the changes and just a third of over 55s can remember the changes taking place.

The research also found that women are less likely to know about the rules than men, with 58% over the age of 55 admitting to knowing little about them compared to 43% of men.

Standard Life’s research found that 35% of Britons aged between 55 and 64 have already accessed their pension pot, prior to State Pension age.

Looking ahead, 35% of adults aged between 45 and 54 say they will probably, if not definitely, take a tax-free lump sum from their pension at some point. Of those, 30% will do so as soon as they hit 55.

Meanwhile, 15% of adults aged between 45 and 54 say they are likely to take a taxable lump sum in retirement. Of those, almost a quarter (24%) plan to do so as soon as they reach 55.

Laura Laidlaw, head of customer communications at Standard Life, said: “Greater flexibility was introduced in 2015 to give people more options when it comes to their pension, both in the way pension savings can be accessed and when they can be accessed.

“The freedoms put a greater onus on people to keep themselves informed of their options when it comes to accessing their pension money. However, five years on there is still a lack of awareness. Little knowledge and understanding of the rules means people risk making decisions that are not best for them. Decisions which could have major implications.”