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Most retirees do not shop around for pension products

The majority of UK adults do not shop around when accessing their pension through either drawdown or annuity.

Data from the Financial Conduct Authority (FCA) shows that 58% of drawdown customers and 57% of annuity customers used their existing provider.

The report also revealed a lack of advice on pensions, as 32% of drawdown sales since October 2015 had been entered into without any financial advice.

In addition, Retirement Advantage polled 1,000 over-55s and found that 50% had not received financial advice before taking their pension.

Around 3 in 5 (59%) of those said they hadn't sought advice because they already knew what they were doing.

Andrew Tully, pensions technical director at Retirement Advantage, said:

"The lack of advice and people not shopping around go hand-in-hand. Freedom and choice should not be a licence for people to receive poor value from their savings.

"Although people say they are confident enough to DIY retirement, there is a direct correlation between the number of people who receive advice and the number of people who shop around."

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