Pensions - Articles - FCA retirement income market data

 “The latest FCA retirement income market data shows that the number of people taking regulated advice when accessing their pension pot for the first time fell from 33% in 2022/23, to 31% in 2023/24. While the decrease appears fairly small, the fact that more than two-thirds of retirees are withdrawing funds from their pension without advice is concerning for the long-term sustainability of pension income, especially given that funds need to last for at least twenty years on average.

 “The regulator highlighted the issue of sustainable income in its thematic review of retirement income advice, but stopped short of including decumulation advice in its proposals on the advice guidance boundary. I’d argue this is an area where advice provides the most value to consumers.

 Providing an income for life is one of the most important financial decisions you will ever make, but it’s also one of the most complicated. Although simplified at-retirement advice could be the answer for some, it may not be the answer for most and so we need to find a way to deliver complex advice in a more cost-effective and accessible way and technology has to be part of the solution, whether that’s adding more automation into the traditional advice journey, making more use of AI, or going down a full digital advice route, ensuring that consumers are making informed decisions can only help improve their long-term financial outcomes.”

 
   FCA’s retirement income data 2023/24