Around 59 per cent of people who accessed a defined contribution pension in the last four years did not use Pension Wise, the free and impartial guidance service, according to the latest figures from the Financial Conduct Authority (FCA).
This figure shows a minor decrease from 63 per cent in 2022. Meanwhile, around 40 per cent of those surveyed reported using Pension Wise, up from 35 per cent in 2022.
But a review of the FCA’s 2024 Financial Lives study by retirement expert Just Group reveals that the percentage of people who did call a Pension Wise adviser increased from 13 per cent in 2022 to 20 per cent. In-person meetings were at 5 per cent, although website usage decreased from 20 per cent to 18 per cent.
Just Group group communications director at retirement specialist Stephen Lowe says: “More than a decade on from the reforms, a large majority of people are still accessing pensions without any professional support.
“While the numbers using guidance are rising, progress remains glacial. Around a million defined contribution pensions are likely to be accessed this year, hundreds of thousands without professional help. Pension Wise gets rave reviews – user surveys have shown 88 per cent of those who used the service said it helped them decide what course of action to take.”