Sixty-eight per cent of people who are accessing their pension are not currently using a financial adviser says provider Canada Life.
The finding is from a study based on research done in March by Opinium among 505 respondents aged over 55 who have accessed their pensions from April 2015.
It sheds light on how people are using pension freedoms and the role of advisers in their decision making.
The study shows two-thirds did not shop around before buying either an annuity or selecting drawdown from their pension provider.
Also, 92 per cent of consumers say they knew they would be taxed on withdrawals above the tax-free threshold while 87 per cent say they knew what that tax payment would be.
The provider found two in five, or 40 per cent, of consumers accessing their pension for cash for the first time were still working and nearly one in four continue to pay into a pension having flexibly accessed at least one pension while leaving the rest invested.
Canada Life technical director Andrew Tully says: “The lack of shopping around continues unchecked. A significant majority are simply taking the easy route and sticking with what or who they know when looking at an annuity or a drawdown product.
“This could simply be driven by easy and swift access to tax-free cash, the obvious lack of engagement with a financial adviser or simply overconfidence and lack of awareness of the options available.
“We know people are increasingly accessing their pensions before planned retirement ages, and there are implications for the one in four people who say they are continuing to pay into a pension.”
He adds: “The strict HM Revenue and Customs annual limit of £4,000 called the money purchase annual allowance could be the sting in the tail that catches the unwary out further down the line.
“Interestingly, only one in 10 people suggested they had any regrets about their pension. However, one in three people also admitted they had withdrawn cash out of necessity. Could we be storing up trouble for the future? I guess only time will tell.”