Ryan FowlerResearch from retirement specialist Just Group reveals that around one in 10 retirees (8%) aged 55 and older who withdrew money from their pension before leaving full-time work regret the decision.
The survey of 1,050 retired individuals over 55 found that nearly three in 10 (28%) had withdrawn pension cash between the age of 55 and when they finished working full-time, either as a lump sum (tax-free or not) or via income drawdown.
Nearly half (49%) of this group said they had not received any advice or guidance before deciding to withdraw from their pension pot, raising concerns over the support available to people making these complex decisions. A little over a quarter (27%) spoke with a regulated financial adviser before dipping into their pension.
This follows the FCA’s latest Retirement Income market data, which signalled that over a third (37%) of people who entered drawdown in the 12 months to March 2023 did not seek or use any advice. The number of people entering drawdown without advice or guidance rose by 16%.
Stephen Lowe, group communications director at Just Group, said: “It’s alarming that a significant portion of retirees are diving into their pension before leaving full-time work without the benefit of any financial advice or guidance.
“The cost-of-living crisis, rising rent prices, and hiked interest rates have all put a significant strain on household finances over the past few years, and for many, pension cash has been a valuable financial resource to fall back on, particularly for those who have faced health problems or redundancy prior to retiring.”
