Retirement: two-thirds risk making the wrong choices by going it alone
Pension reforms introduced in 2015 mean there is much greater freedom, both for investors and for those wanting to access their pension pots. Despite having to make many important decisions, both in the years running up to retirement and afterwards, a recent survey (2) shows that only 32% of retirees take professional advice.
The figures reveal that many are not fully exploring their options and may not be opting for the most suitable pension arrangements to fit their individual circumstances. The study also shows that two-thirds did not shop around before buying an annuity or selecting drawdown from their pension provider, unaware that they could shop around for a better deal.
The Financial Conduct Authority has expressed concerns that the lack of advice could result in poor investment decisions, or people withdrawing cash from their pension pot and putting it into low return cash funds, where it will be eroded by inflation. (2) Canada Life, March 2019