Advice is not just desirable but, in the light of the pension freedoms, it is essential, Karen Barrett has said.
The chief executive of advisory website unbiased.co.uk warned that a lack of planning would put people in real danger of making decisions that could cost them a significant proportion of their retirement income.
She said: “Advice taken in the final few years leading up to retirement has long been shown to make a dramatic difference, and when you add in the increased choices of pension freedom, advice becomes not just highly desirable but essential.
“Seeking the necessary guidance and advice needs to become ingrained in the planning process.”
Her comments came as Unbiased and Prudential launched a ‘retirement countdown checklist’ for advisers to talk through with their clients.
Neil McGillivray, head of technical support for provider James Hay, described the pension freedoms reform as : “a complete change in how advice has been given before and turned the whole idea of income planning on its head. The number of opportunities and choices is amazing.
“We are finding that we are constantly on the phone to advisers at the moment.”
Adviser view
Steve Farrell, IFA for Hampshire-based Lawrence Clarke, said: “People have set up a pension to provide income in retirement and simply taking it as cash is not setting them up for a good retirement.
“That said, the flexibility is a good thing and it is a very good time to be advising on pensions.”
