The research, undertaken by Ipsos MORI, found that over two-thirds (68%) of consumers think FSCS protection for pensions is limited to just £5,000.

Only 4% of consumers (less than one in 20) were able to identify the correct level of protection.

The research also found that, without being prompted, just a quarter (26%) of consumers believed that FSCS protection covered pension products generally. 

Previous FSCS research, revealed in November 2018, found that of those with a pension, 29% of people would invest more if they knew that their pension fund was fully protected by FSCS.

On average, each person within this group would invest a further £1,493 each year.

This shows that consumers are more likely to put their money somewhere that they know is safe. 

In light of this, FSCS says it is working with the industry to establish a set of best practice standards for pensions protection disclosure to ensure that consumers are armed with the right information to make an informed decision about their retirement. 

Mark Neale, chief executive of FSCS, said: "This research confirms the currently low levels of consumer awareness of pension protections.

“Consumers can be confident that if they have a pension or an annuity, it is fully covered by FSCS should anything happen to their provider.

“Such protection is not the case for all financial products available to take you through retirement, so consumers should ensure that they are aware of the different protection limits. 

“We are working with leading firms in the life and pensions sector to ensure that the industry agrees a consistent approach to disclosing pension protection information.

“This working group, launched 18 months ago, will shortly publish guidelines on how life and pension product providers inform consumers about FSCS.”