The ABI has disputed the FCA’s finding that accessing pension savings early has become 'the new norm'.

The regulator made the statement in its pensions freedoms review, published yesterday, saying this was leading to potentially damaging outcomes for consumers who were failing to get advice, failing to shop around and potentially being hit with bigger tax bills after shifting their money.

But the ABI said its own statistics goes against the FCA conclusion.

These showed that while over 100,000 pots are being accessed every quarter, 4.7 million DC pots belonging to those aged 55 and over are not touched.

ABI director general Huw Evans said: “At the time the pension flexibilities were launched we said it would be important to monitor how they bedded in and what the long-term implications are for pension savings.

“This report is a welcome part of that analysis, although our own data does not support the view that accessing pension savings early has become 'the new norm'.”

He said: “Providers responded swiftly to the pension reforms, which did introduce considerably more choice for savers. The market and services are still evolving and the sector is committed to helping customers make informed decisions.

“Work already underway by the ABI and its members includes a project progressing ideas on how a flexible income drawdown comparison tool would work, alongside efforts to increase consumer engagement with pensions and create a ground-breaking pensions dashboard service.

“The report makes clear the importance of access to high quality advice and guidance, reinforcing how critical it is that the Government and FCA focus on delivering the objectives of the Financial Advice Market Review, and more.”