Research reveals that nearly half of retirees are concerned about running out of money in retirement, pointing to opportunities for advice firms.
A poll by abrdn found that nearly four in five (78%) retirees have not sought financial advice, despite 48% worrying about not having enough money
Almost a third (31%) said they had not sought advice because of the cost involved, while a fifth (19%) felt that financial advice is only for those who have a lot of money.
One in six (16%) didn’t want to spend the time and effort seeking advice and 9% said their lack of experience puts them off.
Shona Lowe, financial planning expert at abrdn, said: “There’s a common misconception that financial advisers are reserved only for the wealthy – but this is simply not the case.
“Whether it be tax implications, managing ever-changing expenses, supporting loved ones or the very current concerns about the rising cost of living, speaking to an expert can set you up for a better retirement both financially and emotionally. A key part of that emotional wellbeing comes from having taken control of both your own financial future and that of your loved ones and having the right support as you decide what’s right for you.”
Abrdn’s research also revealed that women were less likely to seek advice on their retirement plans, with less than a fifth (19%) of women seeking advice compared to a quarter (25%) of men. In contrast, women are more likely to turn to their partner, friends or family for advice (8%) versus 6% of men.
Regional differences were also evident, with retirees living in the East Midlands most likely to have sought advice on their retirement plans (28%), followed by those in the North West (24%) and South East (23%).
Lowe added: “It’s alarming to see gender disparity and regional variations when it comes to seeing who is seeking advice on their retirement. As an industry we have a duty to change this by making advice accessible and demonstrating its value.
“Although there is a wealth of material available online, and speaking to those around you is often helpful, we want to encourage more people to consider the benefits that personalised financial and retirement advice could bring to them.”
