The latest FCA product sales data has revealed that fewer retirees are taking regulated advice before switching their pension pot into income drawdown and guaranteed income for life solutions.

Analysis by retirement specialist Just Group found that of the 267,204 decumulation products sold in 2022 just over 41% were sold without advice compared to 34% in 2018.

In the same period, the annual number of advised sales dropped by 7% to 157,011 while the number of non-advised sales increased by 24% to 110,193.

The figures imply fewer retirees are taking regulated advice although the reasons for this are not yet clear.

Just Group, which analysed the figures, said the regulators needed to do more to encourage people to take regulated advice.

Stephen Lowe, group communications director at Just Group, said: “Advice is important in a market where there are multiple providers with often quite different rates on offer, as is the case in the annuity market.” 

“The regulator and policymakers have a responsibility to make sure people are making informed and considered choices that they don’t later regret. These figures put a big question mark over their success so far.”