Inflation worries and the fear of running out of money are putting the gains from pension freedoms at risk.

A report from independent actuaries AKG found that while advisers believe there has been an evolution in how people save for retirement since pension freedoms came into force in 2015, the current crisis is putting progress in this area under strain.

Published in partnership with Abrdn and Scottish Widows, the report included a survey of 2,000 consumers and 100 advisers, along with 19 interviews with advisers during March and April 2022.

In general the report found advisers are positive about pension freedoms despite the shadow cast by inflation concerns.

Advisers also said that how people prepare and save for retirement is changing, however AKG said the hard work has only just begun for the industry.

Running out of money was the number one concern for people in retirement with 42 per cent of respondents listing it as their biggest worry.

The impact of inflation and the cost of living was the second biggest concern (40 per cent), while care costs in older age came out as third (31 per cent).

In addition, the top two concerns that advisers had for their clients were investment volatility (67 per cent) and the impact of rising long-term inflation (59 per cent).

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