A report by LV= into the finances of retirees found just a quarter of over-50s were planning to seek professional financial advice before they retire.
This comes a month ahead of the government’s pensions changes which will give people the chance to use their savings as they wish.
Scottish Friendly warned earlier this week that pensioners could push up house prices across the country if they choose to invest their retirement cash in property.
However, LV= claimed a third of people do not understand the reforms or how the changes will affect them.
Some may not be in a position to buy another property with a million existing mortgages still yet to be paid back by retirees.
In total 4.3m current retirees have outstanding debts, including 2.3m owing money on credit cards.
John Perks, managing director of LV= Retirement Solutions, said: “In just a few weeks those approaching retirement will have even more choice as to how they take their pension income. This is a great opportunity for pension savers and the men and women who take advantage of these new rules could significantly boost their income.
“We would always encourage people to seek financial advice to ensure they make the most of the savings they have spent a lifetime building. We believe that it is crucial that the industry works together to demonstrate the value of guidance and advice to savers.”