Recent research shows consumers are increasingly accessing pension drawdown without taking advice.The Financial Conduct Authority says that individuals who access their pension pot flexibly may need extra protection to manage withdrawals effectively, after it emerged that the number of people going without financial advice has risen dramatically.Figures published in the regulator’s July 2017 Retirement Outcomes Review Interim Reportreveal that the proportion of individuals who forgo advice and take a ‘DIY’ approach to managing their pension pot in retirement has risen from 5% to 30% following the introduction of pension freedoms legislation in 2015.Prior to April of that year, savers were faced with restrictions on when and how they could access their pension pot. Consequently, over 90% of pots were used to buy annuities. Today, as a result of the new freedoms, twice as many pots are moving into drawdown than are being used to purchase annuities.1Yet concerns are growing for those who...
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