More over 50s planning to seek financial advice on retirement options
12 November 2017
The number of over 50s planning to seek financial advice about their retirement options is on the rise, new research from Retirement Advantage has revealed.
The data, featured in the Retirement Sentiment Index report “Expanding Horizons”, showed that 42% of those over the age of 50 plan to speak to a financial adviser about their retirement finance options, up from 38% in 2016.
The findings also revealed that the Internet remains the most popular source for information, with 44% logging on to find out more, closely followed by the government’s Pension Wise guidance service. Just over a third (35%) said they would turn to their pension provider, while 18% said they would consult their employer.
Andrew Tully, pensions technical director at Retirement Advantage, said: “Retirement is a complicated business and it is very easy to make costly, and often irreversible, mistakes. So it’s encouraging that people facing potentially life changing decisions are planning to go and see a professional financial adviser. While there is plenty of information and guidance to be found online, professional financial advice will help people get the most from their retirement finances.”
Trust and cost were cited as the biggest reasons people didn’t wish to consult a financial adviser, with 42% put off by the price of advice, up from 38% last year. Trust in advisers has improved, but one in three still considered trust to be a barrier to seeking advice, the research highlighted.
Tully added: “The increase in trust in professional advisers over the last year is positive. However, the increase in those citing cost as a reason for not consulting an adviser is disappointing, particularly in light of the one in six that say they would trust their pension provider to give them the information they need. Previous analysis has shown that people who don’t shop around for the best deal on products like annuities and drawdown could lose out on thousands of pounds of income over the course of retirement. So it is vital that more is done to encourage people to get professional advice and consider all the options available to them to make the most of their hard-earned savings.”
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