Do you know how pensions work and what to do at retirement? Half of us don't - here's how to prepare

Half of adults don't understand enough about pensions to take decisions about retirement and are unprepared for later life, new research claims.The findings reflect changes to pensions which have made them more rather than less complicated for ordinary savers in recent decades.Most people now have to save up and then live on invested funds at their own risk, with no guarantee their fund will last through old age. Workers must invest wisely to build a big enough fund, decide how to turn it into an income at retirement, and even make an informed prediction of how long they will live.Final salary schemes, which bear the responsibility for providing a guaranteed income from retirement until you die, were phased out unless you work in the public sector.The defined contribution pensions which have replaced them in the private sector put individuals in charge of their own invested funds, both before and after retirement.The Government-backed Money and Pensions Service, which surveyed 12,000 people who were weighted to be representative of the UK population, found 50 per cent are in the dark about pensions.Some 47 per cent do not have a plan for their finances in retirement, while 45 per cent say they are not saving regularly.However, there were signs of a modest rise in confidence in some areas, according to the Maps study. Do YOU understand pensions? Half of adults admit they don't know enough to make important decisions about retirementFinancial dissatisfaction fell from 69 per cent to 63 per cent compared with the year before, hesitancy about managing money dropped from 46 per cent to 41 per cent, and low financial wellbeing decreased from 27 per cent to 24 per cent.Maps is running an 'It All Counts' campaign to persuade people to take one small step towards a better retirement – for example, checking how much you have saved in pensions so far, thinking about whether you are contributing enough, and getting free guidance via one of its services.People who are under 50 can contact MoneyHelper, which gives free assistance on pensions to the public. Its number is 0800 011 3797.If you are over 50 you can book a free phone, online or face-to-face appointment with PensionWise to discuss your defined contribution pension pots.Maps says new pension dashboards, which will allow you to check all your funds and your state pension in one place, are due for launch in 2027-28 and will make it easier to find out their total value.Anna Sharkey, head of policy, says: 'People across the UK work so hard for so long, they deserve a well-earned retirement. 'But to make that happen and live comfortably when you finish work, you have to look into your pension.'We know pensions can feel confusing, but no one has to work it out alone. 'Our experts can give you free, impartial guidance so you can make informed decisions about your pension.'What if your pension is falling shortIf you are worried about whether you will have saved enough, investigate your existing pensions. Broadly speaking, you need to ask schemes the following questions.- The current fund value.- The current transfer value – because there might be a penalty to move.- Whether the pension is in a final salary or defined contribution scheme. Defined contribution pensions take contributions from both employer and employee and invest them to provide a pot of money at retirement. Non-public sector employers have now mostly replaced more generous gold-plated defined benefit – career average or final salary – pensions, which provide a guaranteed income after retirement until you die. Defined contribution pensions are stingier and savers bear the investment risk, rather than employers. - If there are any guarantees – for instance, a guaranteed annuity rate – and if you would lose them if you moved the fund.- The pension projection at retirement age. You can use a pension calculator to see if you will have enough – these are widely available online.You should add the forecast figures to what you anticipate getting in state pension, which is currently £241.30 a week or nearly £12,550 a year if you qualify for the full new rate. Get a state pension forecast here.Consider whether you can afford to pay more into your pension, especially if your employer matches higher contributions, or if you receive bonuses and pay rises.If you are tempted to merge your old pensions, read our guide first to ensure you won't be penalised. If you have lost track of old pots, the Government's free pension tracing service is here. Take care if you do an online search for the Pension Tracing Service as many companies using similar names will pop up in the results.These will also offer to look for your pension, but try to charge or flog you other services, and could be fraudulent. 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