Retirement: 68% may be making the wrong choices by going it alone


Since the introduction of the pension reforms, retirees have much greater flexibility to spend and invest their pension pots as they wish. However, this means that people are faced with important decisions, both in the run-up to retirement and afterwards, that will affect their standard of living and financial outlook for years to come.

A recent report5 shows that only 32% of retirees take professional advice. This means that many may not be fully exploring their options and aren’t putting in place the best pension arrangements for their personal circumstances. Figures show that many simply take the annuity or drawdown facility that their existing provider offers them, as they aren’t aware that they can shop around to get a better deal.


The Financial Conduct Authority has reported concerns that those who don’t take advice may be in danger of making poor investment decisions, or simply withdrawing cash from their pension pot and putting it into low return cash funds where it will be eroded by inflation.

5Canada Life, March 2019