Many retirees have misconceptions about their sources of retirement income, according to research by the Financial Conduct Authority (FCA).
In a survey of around 13,000 people, 80% of people who had accessed their pension pots in the last 2 years said they understood their options well. Nearly half (49%) of those who had not received advice about their pensions in the last year were also confident about their understanding of pension products.
However, the findings of the FCA report suggest this confidence was unfounded, as most of those surveyed misunderstood the features of different retirement income products.
41% did not know that an annuity would provide a guaranteed income for life, and 11% thought there was a risk it could go up or down in value. Around 3 in 10 people (31%) had not heard of a single life annuity at all.
Most retirees were also mistaken about the features of income drawdown, as 63% were not aware that the value of their investments could change.
You might be interested in...
01 May 2026
As we've now entered the new tax year, we've outlined below how to prepare for the new tax system changes for 2026/27 and why planning ahead for your tax return in January 2027 is advised. Read our blog for an overview of the upcoming changes.
Learn more
New Tax System Changes for 2026/2730 Apr 2026
Statutory accounts show the past. Management Information delivers timely insights into performance and cash flow, driving better commercial decisions.
Learn more
Why good Management Information is essential for Business Growth
28 Apr 2026
While you can’t control geopolitical tensions, economic volatility, shifting regulations, you can control how your business is structured to respond to them
Learn more
When To Review Your Business Structure
28 Apr 2026
Market volatility and deal pace are changing how SME owners view risk and reward. Read our insights on value creation in today’s M&A market.
Learn more
Increasing the Value of your Business
27 Apr 2026
Compliance matters, but most commercial problems do not arrive neatly at month end. Modern finance supports decisions as they happen, not just records them afterwards.
Learn more
Building a Better Business with an Outsourced Finance Function
20 Apr 2026
For many businesses, the loss of the key person can cause disruption. Having Key Person Insurance can ease financial risk and uncertainty.
Learn more
What Is Key Person Insurance and Why Does It Matters for Your Business?