Six in 10 (59%) of retirement savers who accessed a defined contribution pension in the last four years didn’t use the free, independent and impartial guidance from Pension Wise, according to the Financial Conduct Authority’s latest figures.
Analysis of the FCA’s flagship Financial Lives research for 2024 by retirement specialist Just Group reveals a rise in the proportion of people having a telephone conversation with a Pension Wise specialist to 20% from 13% in 2022. But the proportion having a face-to-face conversation remained static at 5% and website use declined to 18% from 20%.
Overall, 40% said they had used Pension Wise, up from 35% in 2022, while 59% said they had not used it or were not aware of it, down from 63% in 2024.
Pension Wise offers free, independent and impartial guidance and is the core consumer protection giving defined contribution pension savers specialist support when making complex decisions about how best to access their pensions.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “More than a decade on from the reforms, a large majority of people are still accessing pensions without any professional support.
“While the numbers using guidance are rising, progress remains glacial. Around a million defined contribution pensions are likely to be accessed this year, hundreds of thousands without professional help. Pension Wise gets rave reviews – user surveys have shown 88% of those who used the service said it helped them decide what course of action to take.”
