24 September 2026
If you are covering the FCA's latest retirement income market data or the DWP's Economic labour market status of individuals aged 50 and over, please see the following comment from Adam Cole, retirement specialist at Quilter:
“The FCA's latest retirement income data paints a picture of retirees becoming increasingly pragmatic about how they generate income in later life. Perhaps the clearest example is the continued resurgence in annuity purchases, which increased by 13.2% to 100,144 in the year to March 2026. After years in the wilderness following the introduction of pension freedoms, higher interest rates and gilt yields have transformed annuity rates, allowing retirees to secure significantly higher levels of guaranteed income than was possible just a few years ago. Against a backdrop of market volatility, inflation uncertainty and concerns about making retirement savings last, it is perhaps unsurprising that more people are choosing to lock in a secure income stream for life rather than take on all the investment and longevity risk themselves.
“However, the data also highlights a continuing challenge. More than half of annuity purchases are still made without either regulated advice or guidance, despite the irreversible nature of many of these decisions.
“The FCA data also shows that for most drawdown customers, withdrawing 8% or more remains the most common withdrawal rate regardless of pension pot size. The notable exception is those with pots worth £250,000 or more, where withdrawal patterns are much more evenly distributed and higher withdrawal rates are no longer dominant. Those with larger pension pots typically have greater flexibility and may simply not need to withdraw income at the same rate as those with more modest savings.
“There is also a notable advice gap in drawdown as almost half of people entering drawdown now do so without regulated advice, compared with around a quarter when the FCA first began collecting this data. While drawdown offers valuable flexibility, decisions around withdrawal rates and how long retirement savings need to last can have a significant impact on long-term outcomes.
Working longer reshapes retirement decisions
“Today also saw the release of labour market data around over 50s which shows why these decisions are so important. Employment among those aged 50 to 64 has recovered close to pre-pandemic levels, around 866,000 people in this age group either want work or are actively seeking it, and the average age at which women leave the labour market has reached a record 65.1 years. Retirement is increasingly becoming a transition rather than a single event, with more people blending work and retirement over a longer period. At the same time, FCA data shows people aged 55 to 64 continue to account for the largest share of full pension withdrawals, particularly among those with pots below £30,000.
“The data also revealed that women aged 50 to 64 also remain significantly more likely to be economically inactive than men and more than twice as likely to cite caring responsibilities as the reason. Research from the Pensions Policy Institute found women in their late 50s have private pension wealth worth just over half that of men, highlighting the progress still needed to close the gender pension gap.
“Our own Retirement Lifestyle Report 2026 found that 60% of retirees are concerned about maintaining their standard of living, while 12% are considering returning to part-time work to support their finances. The combination of people working for longer, growing demand for guaranteed retirement income, and ongoing reliance on pension withdrawals underscores how retirement is becoming less about a single decision and more about managing income over several decades. As retirement becomes more complex, ensuring people can access appropriate support, whether through guidance, targeted support or regulated advice, will become increasingly important.”
