Over the last few years, the Financial Conduct Authority has been very clear it is keeping a close eye on the advice given when someone decides to take a retirement income.

Earlier this year, it published its review into this area.

It discovered no systemic issues with advice firms but wasn’t completely happy with the consistency of how many advisers were approaching this area of advice. Particularly around record keeping.

It’s too early to see exactly what effect the FCA’s findings have had on both advice firm’s behaviour and clients’ decisions, but the latest statistics on this market still makes interesting reading.

Savers withdrew over £52bn from their retirement pots in 2023-24 – 20% higher than the previous year

The regulator publishes stats every six months and this latest batch covers October 2023 to March 2024. The key takeaway is the number of people accessing their pension for the first time and the amount withdrawn is continuing to increase apace. Savers withdrew over £52bn from their retirement pots in 2023-24 – 20% higher than the previous year.

There seems little doubt the cost-of-living crisis is the main culprit behind this increase. Savers are turning to their pensions to make ends meet to get through a temporary period of financial pain. The most popular decision for those accessing their pensions for the first time is to cash in the pot completely. And while this initially seems concerning, it’s worth noting most of these pots are worth less than £10,000. Faced with a tuppence ha’penny income or a useful lump sum, many people will opt for the latter.

Those setting up a retirement income are still mostly choosing drawdown, although the numbers buying an annuity increased by 40% last year. In one respect, this isn’t surprising – annuity rates have recently been buoyant – but on the other, this behaviour has been slow to adapt, with the FCA retirement income advice review lamenting low annuity sales.

There is evidence savers are currently taking retirement decisions based on fear and speculation ahead of the Budget

If the latest bunch of stats are showing record numbers of people accessing their pension pots, I have a feeling the next lot – covering April 2024 to October 2024 – will cast this set in the shade.

There is evidence savers are currently taking retirement decisions based on fear and speculation ahead of the Budget, with both contributions and the number taking their tax-free cash rising year-on-year.

It has been just over a month since prime minister Keir Starmer stood in the Rose Garden at Downing Street and warned us of a ‘painful’ Budget to come. It feels like every government minister has been told to include the ‘£22bn black hole in public finances’ in every subject they talk or write about.

There is no doubt the message has struck home. After slowly recovering following the Covid pandemic, the long-running GfK Consumer Confidence Barometer took a recent dip, showing UK people are growing worried about their finances.

Exiting pensions in haste may be a choice clients are forced to repent in leisure

The government is keeping its cards close to its chest on what actual measures will be included in the Budget, but, in the absence of hard facts, rumours are swirling with a growing intensity on possible cuts in the amount of tax-free cash someone can take and the removal of higher-rate pensions tax relief.

This pessimism is leaking out. Advice firms are facing an increasing groundswell of client phone calls and emails asking if the rumours are true and what action they could take ahead of the Budget.

This places advisers in an impossible position. None of us have a crystal ball. Only chancellor Rachel Reeves can tell us if these changes are really on the table and to what extent. Common sense tells us there is no point planning based on a rumour and clients should only make a decision that ties in with their long-term goals.

Ultimately, this is about making irreversible decisions regarding people’s long-term financial futures

Those who are insistent on crystallising quickly may find they lose out on longer-term tax benefits, as well as ending up with a lot of cash sat in their bank account they simply don’t need at this moment.

This episode has really driven home the importance of careful messaging around pensions and thinking through the implications. Ultimately, this is about making irreversible decisions regarding people’s long-term financial futures. And exiting pensions in haste may be a choice they are forced to repent in leisure.

Rachel Vahey is head of public policy at AJ Bell

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Interest in self-driving cars has gone up a gear thanks to Tesla’s recent much-hyped robotaxi event. Chinese autonomous driving firm Horizon Robotics has chosen a good time to raise funds in a Hong Kong listing. If it reaches its target of raising up to $696mn, it would be the city’s largest initial public offering this year.

The company, backed by Intel and Volkswagen, will sell 1.36bn shares. This would make the listing bigger than China Resources Beverage. Before Horizon’s announcement, this soft drinks company had been on track to hold the city’s biggest new share sale this year after it started bookbuilding on Tuesday.

In Hong Kong, having multiple large listings in close succession has frequently meant more scattered funds from retail investors and less demand for companies that are not well-known household names. For Horizon, that should be less of an issue as it has already received significant interest from corporate investors. Cornerstone investors for the Horizon stock offering include the online business software unit of Alibaba Group and Chinese internet search giant Baidu. 

There are good reasons for the interest. Horizon manufactures advanced driver assistance systems and autonomous driving solutions for passenger vehicles in China. Unlike some self-driving and software start-ups that have yet to build a viable product or business model, Horizon has already supplied customers including Volkswagen’s Audi, Continental, BYD, Li Auto and SAIC. Volkswagen has invested in developing technology to integrate autonomous driving-related functions on to a single chip along with Horizon since 2022. Proceeds raised in the listing will be used for research and development as well as sales and marketing. 

Autonomous driving technology, especially fully self-driving cars, have been the topic of much debate. True, the commercialisation and mass production of driverless cars are likely to be many years in the future. But that does not necessarily mean it will take that much time to get individual autonomous driving functions — still requiring driver supervision — into today’s cars as lucrative add-ons.

Autonomous driving technologies use software, radars, lidar sensors and cameras to enhance safety and convenience for drivers. For example, the level of technology today can alert drivers to obstacles, help avoid collisions and assist in parking and lane centring — all of which carmakers can monetise through premium features. 

Hong Kong’s deflated listings market could do with the kind of hype that self-driving cars are generating. But a successful Horizon IPO should at least provide another much-needed boost to shift it out of the slow lane.

june.yoon@ft.com

M&S has confirmed that it has axed one of its most popular breakfast items, leaving shoppers gutted.

The posh supermarket has discontinued its “glorious” Cocoa & Cherry Bircher pot.

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A sweet-toothed customer was devastated after coming up empty-handed while rummaging “high and low” through the fridge section for the breakfast treat.

In a desperate plea they wrote on X/formerly Twitter: “Have you discontinued your glorious Cocoa & Cherry Bircher pot? (Archive pic attached).

“I’ve searched high and low across the UK for it recently – to no avail – and your staff have no idea where it’s gone either?”

He then added “please send help”.

Staff at M&S then sadly broke the news that the pot is no longer available to buy.

They wrote: “Hi Kevin, I’ve just checked but our cherry bircher pots aren’t showing in any stores at the moment so do appear to be discontinued.”

Although they did say they will let their Food colleagues know the user would like to see the pots again in the future.

The X user was left devastated by the news and wrote in disbelief: “NOOOOOOOOO?! Do you know why it’s been discontinued?”

He revealed that “many many” people feel the same about the product and that should serve as a reason for the product to return.

A quick search on X showed many others sharing their love for the pots.

One said: “Dreaming about that cocoa and cherry bircher from M&S I had yesterday. It’s too good to be legal.”

Another wrote: “In other news, I bought an M&S cocoa and cherry Bircher to eat on the train and it was SUBLIME.”

While a third commented: “Guys, if you’re ever in M&S try the cocoa and cherry bircher pot, and the chocolate chunk shortbreads. DIVINE.”

The breakfast item is made up of oats and Greek yoghurt, with cherry compote and cocoa nibs.

It contained 277kcals per pot and weighed around 190g.

We had a look online and struggled to find a similar item that could fill the bircher pots’ shoes – the closest M&S seems to sell is fresh porridge for £1.30.

Why are products axed or recipes changed?

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ANALYSIS by chief consumer reporter James Flanders.

Food and drinks makers have been known to tweak their recipes or axe items altogether.

They often say that this is down to the changing tastes of customers.

There are several reasons why this could be done.

For example, government regulation, like the “sugar tax,” forces firms to change their recipes.

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Some manufacturers might choose to tweak ingredients to cut costs.

They may opt for a cheaper alternative, especially when costs are rising to keep prices stable.

For example, Tango Cherry disappeared from shelves in 2018.

It has recently returned after six years away but as a sugar-free version.

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Fanta removed sweetener from its sugar-free alternative earlier this year.

Suntory tweaked the flavour of its flagship Lucozade Original and Orange energy drinks.

While the amount of sugar in every bottle remains unchanged, the supplier swapped out the sweetener aspartame for sucralose.

Other discontinued M&S treats

M&S shoppers have been left gutted after the chain axed a popular takeaway meal after less than two years.

The supermarket’s Vegan ‘Chicken’ & Pepper Pizza earned rave reviews before it was scrapped.

It also discontinued its almond milk and vanilla hand wash, despite being described by shoppers as “amazing and affordable”. 

The posh shop also removed some of its popular Percy Pig sweets from its range – leading to desperate calls for them to be reinstated. 

Percy Pig Phizzy Chews earned rave reviews before they were scrapped in the brand’s recent confectionery overhaul in July.

What’s more its popular Colin the Caterpillar in a jar treats recently disappeared from the shop shelves.

Marks and Sparks also confirmed that a popular teatime meal has been axed as the supermarket carries out a shake-up.

The supermarket has cut the Plant Kitchen: 2 No Beef Steak Pies.

The supermarket then expanded to say that it was set to relaunch the Plant Kitchen range.

Earlier this year, Marks and Spencer shoppers begged the retailer to bring an iconic flavour of ice cream back after learning it had been savagely discontinued.

A customer was baffled when they came up empty handed while rummaging through the freezer section for Chocolate Millionaires Ice Cream.

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