1 in 3 retirees miss out on pension advice
4th June 2019
Just over a third of retirees have not taken any form of financial advice before accessing their pension, research from the Association of British Insurers (ABI) shows.
Of the 62,376 people who entered drawdown for the first time between April and September 2018, 34% had received no advice.
The ABI warned this could lead to savers making "dangerous decisions" about the large sums of cash they have access to, and potentially running out of money in retirement.
The average size of pension pot accessed during that time was £120,000 - nearly double the average in 2016.
Yvonne Braun, director of long-term savings policy at ABI, said:
"Pension freedoms gave consumers many more options and flexibility in their retirement, but with greater choice comes greater risks.
"To see levels of advice hitting new lows is disturbing and risks leaving thousands of elderly consumers facing poverty later on in their retirement."
Separate research by the Financial Conduct Authority shows 91% of adults in the UK did not receive any financial advice in a 12-month period between August 2017 and August 2018.
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