The proportion of advised decumulation sales has fallen in the past five years, according to analysis from Just Group, which revealed that just over 41 per cent of the 267,204 decumulation products sold in 2022 were sold without advice, up from 34 per cent in 2018 .

The analysis, based on product sales data from the Financial Conduct Authority (FCA), also revealed that the annual number of advised sales dropped by 7 per cent to 157,011 during the same period, while the number of non-advised sales rose by 24 per cent to 110,193.

Commenting on the findings, Just Group group communications director, Stephen Lowe, said that the trend towards lower take-up of regulated advice was concerning given the complexity of the decisions facing pension savers as they switch to decumulation.

He stated: “Advice is important in a market where there are multiple providers with often quite different rates on offer, as is the case in the annuity market.

“And those who want to use drawdown find it almost impossible to shop around without professional help to compare providers to get the best deal because the product’s charging structures, investment choices and fees are so complex and varied.

“Unfortunately, the figures show increasing numbers of individuals going it alone which significantly raises the risks of poorer outcomes in retirement.”

Lowe also suggested that the figures are "particularly worrying" as only a minority of non-advised customers take up their entitlement to the free, independent and impartial pensions guidance offered by Pension Wise.

Eight years on from the ‘freedom and choice’ reforms, Lowe argued that the use of the professional help available – either advice or guidance – is "slowly but surely slipping away, even though we know the average value of pensions used to buy annuities and drawdown has been increasing".

“The regulator and policymakers have a responsibility to make sure people are making informed and considered choices that they don’t later regret," he added. "These figures put a big question mark over their success so far.”

Adding to this, Pensions and Lifetime Savings Association (PLSA) head of DC, master trusts and lifetime saving, Alyshia Harrington-Clark, agreed that while pension freedoms have given savers "new possibilities and options", it is "troubling" that the numbers of savers seeking help with these complex choices is falling.

“To help people with their retirement income decisions, the PLSA has long called for a new statutory obligation on pension schemes to provide helpful guidance and suitable products - either offered by the scheme itself or by a separate provider," she continued.

"Our guided retirement income choices framework would facilitate product providers to support members to choose retirement income solutions that blend the best features of cash, drawdown and annuity products commonly used for retirement today.”

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