Advice drawdown slump a 'massive red flag'

Advice use among drawdown clients falls below 50% for the first time

Isabel Baxter
clock • 1 min read

Advice use among drawdown customers has fallen to below 50% for the first time, Financial Conduct Authority (FCA) data has revealed.

Data from the regulator's retirement income market data released last week showed that of the 280,000 plans that entered income drawdown during 2023/24, only 46% benefited from professional financial advice compared to 66% using advice five years earlier. Use of advice has fallen for all methods of accessing pensions over that timescale, except for annuities where it has risen from 26% to 32%. Just Group communications director Stephen Lowe cautioned that the trend towards more pensions being accessed without professional advice looks like a "massive red flag". He said: "Retirement...

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