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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