There was a pointy rise within the share of pension savers accessing their outlined contribution (DC) pension pots with out recommendation, in response to new evaluation.
Retirement agency Simply Group, which carried out evaluation of current FCA information, discovered that greater than a 3rd (34%) of the 205,641 of pots that entered drawdown throughout 2021/22 did so with out recommendation or steering.
The 34% determine is sharply up on the 25% who didn’t get recommendation or steering three years earlier.
Simply says that greater than half (53%) of the 705,666 outlined contribution (DC) pension pots accessed for the primary time in 2021/22 have been taken by ‘DIY dippers.’ These are pension savers ‘dipping into’ their pensions, usually for the primary time.
A number of research just lately have instructed that pension savers are dipping into pensions to fulfill the challenges of the price of residing disaster and to assist relations.
Simply Group says the FCA information exhibits ‘no assist’ – recommendation or steering – was given for simply over one in three pension pots that entered drawdown throughout 2021/22.
No recommendation or steering was accessed for round two-thirds (65%) of the 395,237 pensions absolutely withdrawn, in comparison with 67% the earlier yr.
Annuity buy is the one space that has seen sustained enchancment within the numbers taking recommendation or steering. The rise comes after a pointy rise in annuity charges this yr making annuities a extra engaging choice than in earlier years.
Stephen Lowe, group communications director at Simply Group, mentioned: “Many lots of of 1000’s of pensions are being accessed or emptied with out skilled assist, rising the dangers that pension savers could obtain poor outcomes, pay pointless tax or fall sufferer to scams.”