Four in ten decumulation products bought in 2021 were purchased without professional advice, according to product sales data from the Financial Conduct Authority.

The data showed 104,774 products out of 262,261 were purchased without regulated advice.

This was the highest number of sales of non-advised decumulation products since the introduction of pension freedoms in 2015.

In 2015 33% of decumulation products were purchased without advice. This compares to 41% in the last quarter of 2021.

Stephen Lowe, group communications director at Just Group, said: “The long-term trend has been a decreasing use of advice by consumers when they are making complex choices around how to use savings to fund retirement.

“We know only a minority of these non-advised customers take up their entitlement to free, independent and impartial pensions guidance, so these figures paint a troubling picture of more people making long-term retirement decisions every year without any professional advice, help or guidance.

“It’s inevitable that without advice and guidance some people will make decisions they’ll come to regret and much more needs to be done to stop so many continuing to fall through the cracks in the advice and guidance framework that the government and regulator have put in place.”

The FCA data includes sales of decumulation products, including guaranteed income for life and drawdown plans. It does not include the over 300,000 defined contribution pensions that are fully withdrawn each year.

Mr Lowe called for the government and the FCA to implement an earlier nudge towards Pension Wise in order to encourage more pension savers to take guidance before making decisions around how they will access their pension savings.

He said evidence given to the Work and Pensions Committee by the Money and Pension Service found that an earlier nudge is more effective in driving savers towards Pension Wise.

Retirement specialist Just Group analysed the FCA’s product sales data for 2021 and retirement income market data for 2020-21.