StratNavApp

• The PLSA found that 32% of individuals accessing their pots under pension freedoms paid for regulated financial advice.
• The FCA found that the proportion of drawdown products bought without advice has risen from 5% before the introduction of pension freedoms to 30% afterwards.
• 63% of all annuity sales in the year to September 2016 were made to non-advised customers.
• There is a significant correlation between an individual’s pension pot size and the likelihood of them seeking financial advice. While 89% of people with pots worth over 500,000 sought advice, this was true of just 20% of individuals with a pension pot of less than 10,000.
• Advice is perceived as expensive.
• The FCA found that 51% of people would not be prepared to pay for advice at any price.A widespread lack of trust in financial advisers, and a lack of engagement with pensions contribute to this effect.
• Advisers may also turn away potential clients if advising them is not likely to be profitable.

Source: Pension freedoms - Work and Pensions Committee - House of Commons