Part Two of the Retirement Report 2026 explores the decisions people face when turning their pension savings into retirement income. While pension freedoms have given people greater choice and flexibility, many still lack confidence in their options and access support too late. The report examines awareness, decision-making behaviours, advice and guidance needs, and the policy reforms that could help people achieve better retirement outcomes.

Older couple sitting on couch, woman holding smartphone while man points at the screen, both focused on the device

Retirement income decisions and support

Retirement income choices are growing more complex, highlighting the need for earlier engagement, clearer support and accessible guidance.

A young man in a blazer discusses with an older couple across a glass table with a laptop and a small plant

The retirement income conundrum

Many people approach retirement with limited understanding of their options and often seek advice too late to maximise outcomes.

Mature couple indoors, man in yellow sweater focused on laptop, woman in blue sweater holding a mug and smiling beside him

Access to pensions is a matter of choice

Pension freedoms offer flexibility, but understanding retirement income options and their trade-offs remains challenging for many savers.

Multi-generational family sitting together on a sofa at home, with two older adults and two children gathered in a relaxed living room setting. The image represents family support, retirement planning, financial wellbeing, inheritance, and intergenerational connections.

Policy recommendations

Targeted support, dashboards and trusted digital tools can help people make more informed retirement income decisions with confidence.

Contributors

Carolyn Jones
Retirement Director, Scottish Widows
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Chira Barua
CEO, Scottish Widows
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Graeme Bold
Managing Director, Pensions and Retirement, Scottish Widows
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Pete Glancy
Head of Pensions Policy, Scottish Widows
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