Cost and trust still main barriers for people considering financial advice
- 42% of over 50s plan to get professional financial advice on retirement finance options
- Professional financial advice still ranks third behind internet research and Government guidance
- Four in 10 cite cost as the biggest deterrent to consulting an adviser
New research1 from Retirement Advantage reveals that 42% of over 50s plan to speak to a professional financial adviser about their retirement finance options, which is up from 38% last year.
The data is revealed in the latest Retirement Sentiment Index report ‘Expanding Horizons’ which also reveals the internet continues to remain the most popular source (44%) for information on retirement finance, closely followed by the Government’s Pension Wise guidance service (42%).
Just over a third of the over 50s (35%) say they will rely on their pension provider, with one in six (18%) saying they would consult their employer.
Trust and cost are still the main barriers for people who said they didn’t plan to consult a financial adviser about their retirement options. 42% of over 50s who don’t plan to use a financial adviser said they are put off by the cost, up from 38% last year. Trust in advisers has improved over the last year, but one in three (31%) still think trust is an issue. 31% don’t feel consulting a professional adviser is necessary, while 18% think it would not bring any benefit, and 15% say they trust their pension provider to provide the advice they need.
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.
‘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.’
The new report Retirement Sentiment Index ‘Expanding Horizons’ can be viewed or downloaded here: http://retirementadvantage.com/adviser/support/reports/retirement-sentiment-report-expanding-horizons
- The data in this release is taken from the latest Retirement Advantage Retirement Sentiment Index report, which is based on data from the following sources:
- 2017 figures: Censuswide survey of 1,005 over 50s, yet to retire, with private or defined contribution pensions, conducted between 28/06/2017 and 29/06/2017.
- 2016 figures: YouGov survey of 1,001 UK adults over the age of 50, with a DC pension but not yet in retirement. Fieldwork was undertaken between 15/08/2016 and 19/08/2016.