New FCA pensions data reveals alarming trend

Gettyimages 697853664 WEB
Julia Grimes
Published: 07 Jan 2016 Updated: 03 May 2016

New FCA pensions data reveals alarming trend

"Drawing Down Your Pension Without Advice is a Fools Paradise", warns David Smith, Director, Financial Planning at Tilney Bestinvest

"The latest Retirement Income Data published today, 7 January 2016, by the Financial Conduct Authority* has shown a worrying and alarming trend; despite the complexities of retirement and the fact that this will in most cases be one of the two biggest financial decisions of an individual’s entire lives, alongside purchasing their home, around 30% of all those accessing their pensions as full withdrawals or purchasing a guaranteed income for life in the forms of an annuity decided against obtaining professional financial advice or using Pension Wise, the Government funded guidance service.

"Another worrying trend is for the majority of consumers continuing not to shop around, despite the clear benefits of doing so. 64% of those taking an annuity did so through their existing provider. Disregarding the fact that an annuity may not even be the best course of action for many of those, retirees need to know that they could potentially receive hundreds or even sometimes thousands more each year by shopping around and taking their annuity with another provider whether the fees to take professional advice could prove to be money very well spent.

"The age group that took the highest rate of withdrawal (i.e. the most in a single transaction) was the 55-59 bracket. Have these individuals ensured they have sufficient financial resources to live off in retirement? Numerous consumer surveys have revealed that most people have little idea of how much they will need to meet their income needs in retirement. Or indeed, do they recognise that by taking these withdrawals they can only invest £10,000 per annum in pensions thereafter? They would if they had sought advice…

"Ultimately, whether it is to ensure the right form of income is selected, ensuring that income can see a retiree through to the end of their days, or simply to ensure they tax is not paid unnecessarily Financial Advice, or least guidance from Pension Wise should be sought. Few people would contemplate purchasing their home without engaging a lawyer in the process, so it is worrying that the same logic is not being applied when it comes to drawing down a pension. Not taking any advice or guidance is foolhardy in the extreme and could inadvertently cost many thousands of pounds more than advice would have."

To discuss this issue or any other financial planning topic please contact David Smith on 0191 269 9970 /

- ENDS –


Press contacts:

Jason Hollands
0207 189 9919 / 07768 661382

Gillian Kyle
0203 818 6846 / 07989 650 604

Important information

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Current or past yield figures provided should not be considered a reliable indicator of future performance.

This article is not advice to invest or to use our services.

If you are unsure of your options you should seek professional financial advice or visit

Before accessing your pension it is important to consider all of your options therefore you should seek professional financial advice or visit

About Tilney Bestinvest

Tilney Bestinvest is a leading investment and financial planning firm that builds on a heritage of more than 150 years. We look after more than £9 billion of assets on our clients’ behalf and pride ourselves on offering the very highest levels of professional client service with transparent, competitive pricing across our entire range of solutions.

We offer a range of services for clients whether they would like to have their investments managed by us, require the support of a highly qualified adviser, prefer to make their own investment decisions or want to take more than one approach. We also have a nationwide team of expert financial planners to help clients with all aspects of financial planning, including retirement planning.

We have won numerous awards including UK Wealth Manager of the Year, Low-cost SIPP Provider of the Year and Self-select ISA Provider of the Year 2013, as voted by readers of the Financial Times and Investors Chronicle. We are pleased that our greatest source of new business is personal referrals from existing clients.

Headquartered in Mayfair, London, Tilney Bestinvest employs almost 400 staff across our network of offices, giving us full UK coverage, and we combine our award-winning research and expertise to provide a personalised service to clients whatever their investment needs.

The Tilney Bestinvest Group of Companies comprises the firms Bestinvest (Brokers) Ltd (Reg. No. 2830297), Tilney Investment Management (Reg. No. 02010520), Bestinvest (Consultants) Ltd (Reg. No. 1550116) and HW Financial Services Ltd (Reg. No. 02030706) all of which are authorised and regulated by the Financial Conduct Authority. Registered office: 6 Chesterfield Gardens, Mayfair, W1J 5BQ.

For further information, please visit:


This release was previously published on Tilney Smith & Williamson prior to the launch of Evelyn Partners.