Sarah Luheshi said there were various important issues to tackle for policymakers and regulators.

Ms Luheshi has outlined her concerns as part of an FCA report looking at how to encourage firms to do more to support the ageing population.

She said: “It is a key time for government, industry and other stakeholders to look at ways of making sure that the pension system is easy to navigate for all DC savers, especially those with low levels of financial capability, and that appropriate and accessible products, advice and guidance are offered.

“If there is one overriding conclusion, it is that consumers need better help from those operating in the pensions arena. Consumers need help in understanding what they can do to make best use of DC pensions and how to do it. Or it needs to happen on their behalf.

“As all stakeholders, across industry and Government, work together to address gaps in guidance and advice and develop new products and default strategies, they will need to be aware that as the market changes and fluctuates, so will the support needed by consumers.”

Decisions about accessing DC savings are likely to be very difficult for many people to make without assistance, she said.

Policymakers, regulators and the pensions industry must work together to address what she described as a "reluctance or inability to plan beyond the next few years", she stressed.

With estimates of fewer than one in ten people accessing their pots having a Pension Wise session, she hopes the Financial Advice Market and Public Finance Guidance Review will address the existing guidance and advice gaps.

Her comments formed part of The FCA's Ageing Population Discussion Paper, published today.

Tracey McDermott, acting chief executive of the FCA, said: "The number of people aged over 65 in the UK is expected to increase by 1.1 million in the next five years. There is a real and urgent challenge for the financial services sector to develop new and innovative products to meet the needs of our changing population.

"The publication of this discussion paper is intended to stimulate debate and discussion about these needs and how to meet them. Ultimately, the industry must take the lead but we recognise that the FCA has a key part to play in ensuring we encourage appropriate innovation that also provides proper levels of protection for consumers. This work will help us and the industry to develop our approach with the benefit of insights from others, in particular those representing the end consumers of these services."