A fifth of over 50s rely on DB pensions to provide almost half of their retirement income but the numbers are set to fall, according to Standard Life’s Retirement Income Almanac.

The company’s research showed that 20% of over 50s rely, or intend to rely on a DB pension, providing 44% of their retirement income.

Meanwhile 73% of over 50s expect the state pension to total 51% of their income in retirement.

The Retirement Income Almanac tracks the different sources of retirement income for over 50s.

It showed how the number of people with access to DB pensions will drop off over the coming years, with 27% of over 80s and 23% of over 70s saying they rely or intend to rely on it, compared to just 20% of over 60s and 15% of over 50s.

The findings also point to the value of the generous pension arrangements, with people over 80 saying 56% of their income comes from DB pensions, while the figure for over 60s and 70s was 46% and 45% respectively. It also showed how around half of over 50s (46%) have used, or intend to use, general savings and investments to help fund their retirement, contributing an average of 20% to their overall income in retirement.

Other sources of income include DC workplace pension pots which have or will make up 37% of retirement income for around one third of over 50s (27%). A further fifth of over 50’s (21%) have or expect to have the income from a partner’s pension pot, making up 25% of their overall income in retirement. 

Furthermore, over one in ten (13%) of over 50’s use, or intend to use, the income tied up in their home to fund their retirements, making up 15% of their overall retirement income. While 5% have or intend to use income from an investment property, making up a sizeable 26% of their retirement income.

Meanwhile a small number are also turning to children or family members for financial support in retirement. While this only makes up 2% of over 50’s, the proportion of retirement income derived from this source is a sizeable 21%. 

Top sources of income over 50’s have used or intend to use to fund their retirement, and the proportion of income from those sources

Claire Altman, managing director of individual retirement at Standard Life, said: “Pension planning grows increasingly complex for retirees as we continue to move away from the era of guaranteed DB pensions, with people increasingly reliant on more varied sources of income.

“For those approaching or at retirement, the focus will be on how to access their savings and make them work harder. Most people will want a degree of guaranteed income to cover essential spending but the reality is almost a third of over 50s say they are unsure or don’t know how to use or plan to use their savings.

“This makes it all the more imperative to make sure we, as an industry, are helping people make the best decisions around how to manage their retirement income.” 

• The research was commissioned by Standard Life and conducted by Opinium, with a nationally representative sample of 2,000 over 50 years old, between 6- 14 March 2023.