Less than 10 per cent of retirees regret withdrawing money from their pension early, research has found.
Retirement specialist Just Group found 8 per cent of retired people aged 55 and older, who withdrew money from their pension before leaving full-time work, said they regret it.
Almost half of this group said they had done so without seeking financial advice.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “It's alarming that a significant portion of retirees are diving into their pension before leaving full-time work without the benefit of any financial advice or guidance."
The group spoke to more than 1,000 people in the wake of the Financial Conduct Authority's retirement income market data which showed 37 per cent of people who entered drawdown in the 12 months to March 2023 did not seek or use any advice.
It also showed the number of people entering drawdown without advice or guidance rose by 16 per cent.
Lowe added: "The cost-of-living crisis, rising rent prices and hiked interest rates have all put a significant strain on household finances over the past few years, and for many, pension cash has been a valuable financial resource to fall back on, particularly for those who have faced health problems or redundancy prior to retiring.”
In April, the FCA revealed the total number of people accessing their pensions for the first time rose to 739,535, compared with 705,666 in 2021/22.
tara.o'connor@ft.com
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