Kate Smith, regulatory strategy manager at Aegon UK, said people need to be encouraged at an earlier age to assess their pension options."
She wants greater awareness about retirement income to be raised and believes digital technology must be used to achieve this.
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Her comments come as the FCA closed its consultation period today for its Retirement Income Market Study – which followed on from the review of annuities which found that market was failing consumers.
The regulator is examining whether the retirement income market is working well for consumers and will consider measures that could be implemented to promote competition.
It will look at products which are purchased from a pension pot that provide an income during retirement including:

• Annuities
• Income drawdown
• Other alternative products

Aegon UK has contributed to the consultation.
Ms Smith said: "We shouldn't allow consumers to sleepwalk into retirement. Simply issuing 'wake-up packs' a few months before retirement date and expecting consumers to make informed decisions should become a relic of the past.
She called on the FCA to make the non-advised route safer.
She said: "We're acutely aware that many consumers find it difficult to get the best retirement income solution to meet their needs.
"Ideally everyone should get professional advice, but we recognise this won't happen. Consumers should be given the flexibility to use a digital non-advised retirement income service with inbuilt guidance, tools and touch points from a regulated firm.
"The current retirement processes aren't fit for people looking to retire in a digital age.
"We need to harness the power of digital technology to encourage customers to engage earlier and increase awareness of the decisions we'll all need to make."
The FCA's Retirement Income Market Study will report interim findings in 2014.