PIMFA
Pensions
For most people, their pension represents the largest source of wealth that they will accumulate over their lives. In accumulation and decumulation the wealth management, financial advice and planning industry provides a reassuringly regulated and professional service that puts the customer at the heart of everything they do.
This has become increasingly complex for firms over the preceding decade as they have sought to navigate a changing regulatory environment. Despite substantive reforms such as the introduction of automatic enrolment, pension freedoms, changes to pension transfer advice and more, pensions continue to be a subject of reform from Regulators and the Government. Over the coming years we believe that we see more consolidation of pension schemes, further drive towards value for money, and a drive to focus the way in which and where these schemes invest. Where these reforms directly impact PIMFA firms, we will engage on your behalf to secure change in your interests.
- FCA Retirement Income Market Data 2024/25
The FCA has published retirement income market data for 2024-2025, with key findings set out:
- Total number of pension plans accessed for the first time in 2024/25 increased by 8.6% to 961,575 compared to 2023/24 (885,455).
- Sales of drawdown policies saw the biggest increase from 278,977 in 2023/24 to 349,992 in 2024/25 (25.5%).
- Sales of annuities increased by 7.8% from 82,061 in 2023/24 to 88,430 in 2024/25.
- The overall value of money being withdrawn from pension pots increased to £70,876m in 2024/25 from £52,152m in 2023/24. This is an increase of 35.9%.
- 30.6% of pension plans accessed for the first time in 2024/25 were accessed by plan holders who took regulated advice (down from 30.9% in 2023/24).
- The number of DB to DC transfers continued to fall from 7,181 in 2023/24 to 6,418 in 2024/25.
Access the publication here.
- Our Latest work
FCA DP24/3: Pensions: Adapting our requirements for a changing market
PIMFA Responds to FCA DP24/3: Pensions: Adapting our requirements for a changing market
Read the response here
This guide provides a review of the FCA policy statement on pension transfer advice.
Latest News
Retirement is no longer a moment, and neither is the advice opportunity
FCA Retirement Income Market Data 2025/26
The FCA has published analysis from the latest data from firms on the retirement income market, covering the year April 2025 to March 2026.
The data shows consumers continued to use a range of retirement income options. Both flexible withdrawals and guaranteed income products increased compared with the previous year. Taking an entire pension pot in one go remained the most common way of accessing a pension pot for the first time, although its share of all pots accessed fell.
Key findings:
- Total number of pension plans accessed for the first time increased by 7.4% to 1,047,008 in the year ending 31 March 2026, compared with 974,990 in the previous year.
- Plans entering drawdown increased by 10.5% to 401,137 in the year ending 31 March 2026, compared with 362,946 in the previous year.
- In the year ending 31 March 2026, 64.5% of those who entered drawdown took a Pension Commencement Lump Sum, compared with 61.9% in the previous year, an increase of 2.6% percentage points.
- Annuity purchases increased by 13.2% to 100,144 in the year ending 31 March 2026, up from 88,430 in the previous year.
- The proportion of pension pots accessed through full encashment fell to 45.8% in the year ending 31 March 2026, compared with 47.4% in the previous year. Full encashment remained the most common way of accessing a pension pot but accounted for a smaller share of all pots accessed.
- The total value withdrawn from pension pots increased by 21.7% to £91,236m in the year ending 31 March 2026, up from £74,987m in the previous year. The proportion of pots accessed with a value of £250,000 or more also increased, reaching 8.6%, compared with 7.2% in the previous year, and 4.8% in the year ending 31 March 2024.
- In the year ending 31 March 2026, 30.8% of pension plans accessed for the first time were accessed by plan holders who took regulated advice broadly unchanged from 30.4% in the previous year.
- The number of DB to DC transfers continued to fall, decreasing to 6,083 in the year ending 31 March 2026, compared with 6,418 in the previous year.
Access the data and more details here