• 90% of those approaching retirement say simplifying their finances is a priority and more than half of those aged of those aged 55 to 70 with a Defined Contribution (DC) pension (54%) see retirement as a chance to reset their finances
  • Four in five (81%) with a DC pension say paying off debts is important before retiring; 57% worry about having a mortgage in retirement 
  • Among mortgage holders 73% worry about having one in retirement

For many people, starting to access their pension pots and beginning to prepare for retirement represent a fresh financial start in which they look to ‘clear the decks’ and simplify their finances, particularly in relation to any outstanding debts. Standard Life’s Centre for the Future of Retirement has identified that this desire for simplicity is driven both by a sense of a new opportunity and a need to reduce the complexity of their finances at the start of this new life chapter.
 
The research1 among those aged 55-70 with a DC pension found 90% of those yet to retire want to have their finances as simple and straightforward as possible before retiring whilst over half of all those aged 55-70 with a DC pension (54%) view retirement as an opportunity to reset their finances.

Four in five (81%) say paying off debts is important before retiring. Among mortgage holders the findings were pronounced with 73% worrying about having one in retirement and 68% of those yet to retire saying paying off their mortgage was a priority.

The desire to be debt free is in many cases driving major pension drawdown decisions with 24% who took a tax-free lump sum using it to clear or reduce debts and 14% using it to pay down mortgages.

In addition to the polling, the Standard Life Centre for the Future of Retirement’s report Decisions in the dark used in-depth qualitative research focusing on decisions, emotions and behaviours of people with Defined Contribution pensions as they navigate a changing retirement landscape.2 The theme of a reset or opportunity to simplify their finances was a consistent discussion point and many of those interviewed highlighted that they’d used it as a chance to consolidate their pensions too.
 
The polling found that retirement finances and pensions in particular generate mixed feelings among those around retirement ages. While there is a degree of trepidation, respondents tended towards optimism, in what is an exciting life stage. On pension decision making, 50% feel confident, compared to a third (34%) who feel confused, whilst 58% feel hopeful compared to 33% who feel scared.

Catherine Foot

The thought of retiring, and the process of doing so, can bring up strong emotions, and these feelings often shape how people manage their finances. For many, there’s a powerful desire to enter retirement free from debt, which can heavily influence the decisions they make.

More and more of those approaching retirement are using Defined Contribution pensions to fund their spending. Unlike previous generations who had the simplicity and certainty of a Defined Benefit pension, these DC retirees need to make active decisions about how to make the most of their money. Regulation and the industry’s ability to support people through this period is beginning to catch up with the introduction of new innovations such as Targeted Support and plans for Guided Retirement. These initiatives will help providers suggest potential courses of action or offer people a retirement income option that reflects the range of their needs.

- Director of the Standard Life Centre for the Future of Retirement

Should you use your pension to pay off your mortgage or pay down debts?

Catherine continues: “The decision of whether to use your pension to pay off debts is a complex one and the right course of action will depend on the individual. For those with high interest unsecured debts, using savings to clear debt could make sense. Decisions around mortgages can be more complex as much depends on whether you expect your pension and savings to generate returns beyond the interest you’re paying and factors like whether you expect to receive an inheritance or other lump sum. The trade off in both cases is that savings you may have planned to fund your retirement are spent early leaving less to fund what can be a long period.”

Media enquiries

For further information, photos, video content or interviews, contact:

  • Rachel Esland

    Rachel Esland

    Public Relations Manager, Centre for the Future of Retirement, People
    Telephone

    +44 (0)797 406 3067

    Email

    rachel_esland@standardlife.com

Notes to editors:

1 – Research conducted for the Standard Life Centre for the Future of Retirement by Opinium Research among 2,000 UK adults aged 55-70 with a DC pension between 5th – 13th February 2026
2 – Standard Life Centre for the Future of Retirement, Decisions in the dark: How the DC pioneer generation are navigating retirement income decisions (January 2026)

About the Standard Life Centre for the Future of Retirement

Standard Life Centre for the Future of Retirement is a pioneering UK think tank with a bold ambition to help everyone achieve long-term financial security.

How we work, save, and retire is changing, and it will look different for everyone. That traditional idea of spending decades in full-time employment and then retiring with a comfortable, guaranteed income is no longer going to be a reality for most people.  

Standard Life Centre for the Future of Retirement uses research to provoke fresh debate, drive action and influence change so that people can secure their financial future and enjoy a decent standard of living in their later lives.

It is led by Catherine Foot, a leading research and policy specialist who was appointed as the Director of the think tank under its previous brand, Phoenix Insights, in June 2021.

Catherine has over 20 years of experience in the field. From 2015 to 2021, she was Director of Evidence at the Centre for Ageing Better. She has also held senior roles with The King’s Fund and Cancer Research UK. 

About Standard Life

Standard Life is a retirement specialist focused entirely on retirement saving and income.

We are proud to manage around c£317bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better. 

With our focus entirely on retirement savings and income we want to be the business that people trust to guide their retirement journey, helping our customers achieve better outcomes and greater financial security in later life. 

As a FTSE 100-listed group we are using our size, expertise and influence to shape the world our customers will retire into, and are committed to helping three million customers by 2035, take action towards a better retirement. 

Standard Life is a responsible investor with a clear commitment to supporting a more sustainable future. The company has achieved its net zero goal across its emissions for 2025 and is working towards net zero investment portfolios by 2050 or sooner.

Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and Carer Positive Exemplary Employer and in 2025 became one of Britain’s Most Admired Companies in 2025.