Guidance from direct contribution pension providers could be improved, the Pensions Regulator has found.
The organisation conducted research on how advice on retirement income options is given to members.
According to the Pensions Regulator, 30 per cent of the schemes broke industry rules on communications with members who were about to retire.
Meanwhile, 57 per cent were found to need improvements to their services.
Converting a pension pot into an annuity is one of the ways in which a retiree can generate an income separate from the state pension.
Taking out an equity release plan also provides an additional way to generate an income.
June Mulroy, Pensions Regulator executive director of operations, commented: "We expect to see adoption of good practice as the norm.
"This will help members to make the right decisions at retirement, which we recognise can make a significant difference to the income they receive [during retirement]."
Posted by David Hancock
