Under one of the lesser known pension changes that came into effect in April, unused defined contribution pensions can be passed on to beneficiaries without a punitive tax charge that would previously have applied.

Many families have decided they want to pass on cash from their pensions sooner so their families don’t have to wait for their inheritance. Some 16 per cent intend to use the new rules to give money to their families to help them buy a new home, pay for education, or simply fund a luxury they wouldn’t usually be able to afford.

Prudential asked couples to list their priorities for money they plan to withdraw in their first year of retirement. Taking a holiday was most popular (26 per cent), followed by paying off debts (25 per cent) and home improvements (17 per cent). One in six would seek financial advice as a priority before making any decisions.

The pension freedoms, which allow savers aged 55 and over unprecedented access to their pension funds, have created new concerns among those planning for their retirement.

Top of this list of was running out of money in retirement (33 per cent), making mistakes in retirement planning (15 per cent), making decisions leading to unnecessary tax bills (13 per cent), being faced with too many retirement income choices (nine per cent) and falling victim to fraudsters (seven per cent).

Vince Smith-Hughes, retirement income expert at Prudential, said: “It’s good to see six months in the pension freedom reforms are encouraging couples to stop and think about their financial priorities in later life. These figures show for many people there is balance to be struck between passing money onto their family and funding their own retirement.

“For many couples we spoke to retirement is still a long way off. Previous research has shown a growing trend for people to work well beyond what have traditionally been seen as the standard retirement ages. With this in mind it’s never too late to start saving as much as possible to boost your pension pot to ensure you and your family are as comfortable as possible in the years to come.

“Of course with freedoms come a wider range of choices for pension savers. For most people a consultation with a professional financial adviser will help make the most of these choices, and for those with defined contribution pension savings aged 50 or over the Government’s free and impartial Pension Wise service offers valuable guidance.”

Under the pension freedoms that came into force in April 2015 individuals have the freedom to pass on their unused defined contribution pension to any nominated beneficiary when they die without paying the 55 per cent tax charge previously applied to pensions passed on at death. If the individual dies before they reach the age of 75, they will be able to give their remaining defined contribution pension to anyone as a lump sum completely tax free, if it is in a drawdown account or unvested.

However, perhaps the most radical change that has come about with the pension rule changes is the ability for over-55s to convert their pension pot into a cash lump sum, 25 per cent of which is tax free with the remainder taxable at an individual’s marginal rate.

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