Almost one in 10 (8%) retirees who withdrew from their pension between the age of 55 and leaving full-time work have said that they regret the decision, Just Group has found.

In a survey of 1,050 retired over-55s, Just Group found that 28% had withdrawn pension cash between the age of 55 and when they finished working full time, either as a lump sum or via income drawdown.

Just Group also revealed that nearly half (49%) of this group said they had not received any advice or guidance prior to making the decision to withdraw from their pension pot from retiring from full-time work.

The firm said this raises concerns over the support available to people making these decisions, with just over a quarter (27%) speaking with a regulated financial adviser before deciding to dip into their pension.

This follows the Financial Conduct Authority’s retirement income market survey, which signalled that 37% of people who entered drawdown in the 12 months to March 2023 did not seek or use any advice.

Furthermore, the number of people entering drawdown without any advice or guidance rose by 16% in the same period.

This study also found that for those purchasing annuities, more than half (57%) of those who purchased an annuity in the 12 months to March 2023 did not use any advice or guidance, compared to 41% in the 12 months to March 2022.

Group communications director at Just Group, Stephen Lowe, 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 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.

"For some pre-retirees, tapping into their pension pot before retiring from full-time work may be a sound decision, but it’s inevitable that without advice and guidance some people will make decisions they’ll come to regret.

"Much more needs to be done to stop so many falling through the cracks in the advice and guidance framework that the Government and regulator have put in place."

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