Fewer people are taking regulated advice before accessing their pensions, with only 31% doing so in 2024-25. Just Group highlights the steepest decline in drawdown plans, where advice use has fallen to 45% from 66% in 2018-19 despite a sharp rise in withdrawals.
Of the 962,000 pension plans that were accessed in 2024-25, less than a third (31%) were taken after receiving regulated advice. Most significant, because of the extra costs, complexity and risk, are the 350,000 drawdown plans accessed for the first time, where only 45% were taken after receiving advice. This compares to 66% in 2018-19 and shows a falling trend for six years in a row.
The number of pots accessed after using the free, independent and impartial Pension Wise – the government’s guidance service that is highly rated by its users –only accounted for one in 10 (11%) of pots accessed.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “The figures show a 9% rise in pensions accessed to 961,575 which was largely driven by a 25% rise in drawdown plans to 349,992.
“While the numbers accessing pensions and using advice are up, the proportion of customers using advice has fallen for each withdrawal option since last year. The downward trend in use of advice for drawdown over time is particularly obvious and should be seen as a red flag.”
