United Kingdom

77% of people are not using financial adviser when planning for retirement

January 2018

Financial adviser services are worryingly underused according to a recent Aegon report to assess the nation’s confidence to retire comfortably.

The Actuarial Post reported that Aegon expressed concerns over the results of the Retirement Confidence Survey that showed 77% of people have not tapped into the advice a financial adviser can provide in pension planning.

The report also found that 39% of people do not think they will be comfortably off in retirement and 38% have not given a thought to their income needs in retirement.

The Actuarial Post said that Aegon’s report highlights “how isolated some people are when it comes to making retirement plans.”

Aegon’s pensions director Steven Cameron said: “It’s quite concerning that so many people are going it alone when many seem to be lacking the confidence and information to tackle retirement planning. There are some decisions where advice could make all the difference, and be the factor that determines whether people feel in control of their finances and have a clear idea about what their financial targets are.

He added: “For some people the perceived price tag that comes with advice immediately rules it out as an option. But people need to realise that there are various options for receiving advice and it might be less expensive than they imagine. Some people might have options available to them through their employer and those in their 50s could benefit from some guidance from Pension Wise. Whatever the situation, people shouldn’t feel alone when planning for retirement, there are options out there.”

Principal consultant at Aon Employee Benefits, Chris McWilliam said: “The issue is not just about saving for retirement but people's financial capability in general. In a recent Financial Conduct Authority survey, 89% of employers agree that financial concerns have an impact on employees’ workplace performance (Source: Financial Well-being in the Workplace: A Way Forward March 2017) but the good news is that employers can help by providing access to financial guidance sessions. These give members a basic understanding of the key issues and helps them to understand where financial advice can be of benefit, such as in the run up to a person's retirement.”

 

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