The proportion of savings accessing a pension for the first time using income drawdown has dipped below 50 per cent for the first time, according to Just Group.
According to the FCA’s Retirement Income Market Data released this week, only 46 per cent of the 280,000 plans commencing income drawdown in 2023/24 received professional financial advice, down from 66 per cent five years earlier.
Over this time, the usage of financial advice has decreased for all pension access options, except for annuities, which has climbed from 26 per cent to 32 per cent.
Just Group group communications director Stephen Lowe says: “The trend towards more pensions being accessed without professional advice looks like a massive red flag.
“Retirement decisions are some of the trickiest financial decisions that people will ever face. That’s particularly true for income drawdown where the saver is being asked to shoulder all the longevity and investment risk and is likely to find their income fluctuating over time.”
