The group has stated that any funds put into a pension will be “locked away” until you retire, which is very beneficial.

This comes in light of some people close to retirement being encouraged to enter into direct forms of investment, which is a risky strategy due to the current market situation and the risk of being unable to wait for improved conditions, according to TPAS.

Commenting on a pension being a safer option than direct investment, Des Hamilton, technical director of TPAS, said: “If you’re close to retirement [and] suddenly it [the market] falls away, you don’t have the ability to wait for it to recover.”

TPAS is an independent non-profit organisation that provides free information, advice and guidance on all pensions.

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