A similar number (41%) of advisers told financial strength ratings specialist AKG that pension freedoms has increased the risk of retirees exhausting their funds.
Despite 43% of advisers believing clients are confused by the broader range of retirement options, 51% still viewed the introduction of grater flexibility as a positive development for their clients over the past decade.
Consumers surveyed for the AKG report also had concerns. Close to half (44%) said retirement planning has become more confusing since pension freedoms were introduced.
Two thirds (71%) of the consumers surveyed for the report said they value the ability to access pensions flexibly, but 45% shared worries that having flexibility means they may run out of money in retirement.
Two thirds (59%) of the pension savers said they are actively trying to balance investment risk with their income needs in retirement.
The paper also highlighted a sharp divide between advised and unadvised pension savers, as well as a growing advice gap. Only 29% of consumers said they would turn to a financial adviser for support, and just 20% said they were willing to pay for financial advice.
Warren Bright, head of retail intermediary distribution at Standard Life, who co-sponsored the report, said the findings highlighted the need for the introduction of targeted support.
He said: “The role of advisers has never been more important for society with full financial advice remaining the gold standard. However, if we want to continue revolutionising people’s retirement prospects across the next decade, we need collaboration between government, regulators, providers and advisers to take positive steps towards helping more people when it comes to making major financial decisions around retirement.
“We know that many are unwilling or unable to seek advice and addressing adequacy and access are key. The ongoing consultation on targeted support, if implemented properly, has the potential to address the balance where worryingly 90% of people are making retirement decisions unsupported.”
The FCA consultation into targeted support is focused on helping consumers understand their choices around pensions and if it could help close the advice gap.
Advisers welcomed the idea of introducing targeted support as a valuable tool to help close the advice gap but warned of potential consumer harm if the difference between guidance and advice is not made very clear.
Opinium Research surveyed 2000 UK pension savers in March on behalf of AKG.
Pureprofile surveyed 100 financial adviser on behalf of AKG on 19 March.
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