Just 30% of respondents said the new pensions freedom rules, which came into force on 6 April, would change their plans for retirement income, according to the study by Schroders.

Respondents were also asked what they planned to do with their retirement income following the introduction of the pension reforms.

Of the people who said the reforms would impact their plans for retirement income, almost half (45 per cent) said they intended to take some money as cash and put the balance in an investment fund.

A third plan to invest in an income fund, 23 per cent said say they will keep the money in cash and 29 per cent plan to put the money towards a luxury purchase, such as a dream holiday. Some 28 per cent said they would use the money to pay off debts.

Of the remaining 70 per cent, who do not think the reforms will affect their plans for retirement income, 20 per cent said this was due to worrying about tax liabilities, 31 per cent said it was down to not knowing what decisions to make and not fully understanding the changes. 11 per cent did not have a pension.

“Surprisingly only 30 per cent believe the new UK pension reforms will have an effect on their retirement planning. This seems to be due to wide-ranging confusion about the tax implications and the choices available to them,” said Robin Stoakley, managing director, UK Intermediary at Schroders.

“The investment possibilities for pre and post retirement are extensive and it’s important for people to understand what it means for them. Good financial planning and advice will help with this.”