Your IndustryMay 3 2016

Why clients come to you: bad investments and using up cash

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Why clients come to you: bad investments and using up cash

Bad investments and running out of money are the main reasons clients come to advisers, according to research from Fidelity.

According to a survey of 510 people between 17 and 26 February 2016 who have retired since April 2015 or accessed their pension since then, 38 per cent are concerned about how they will make their money last.

In its Class of 2015 report, Fidelity found when it comes to retirement planning, the biggest challenge is planning for the long-term as 38 per cent are concerned about how they will make their money last.

About a third of consumers were worried about taking the wrong investment decision.

One in five consumers said they found the rules surrounding taxation of pensions very challenging or struggled with the time it takes to sort everything out.

Just 4 per cent said they have struggled with accessing their funds under the new pension freedom rules.

Fidelity also conducted research into where consumers seek advice and guidance.

In 2015 29 per cent turned to independent financial advisers compared with 41 per cent over 2014.

The Pensions Advisory Service and Pension Wise helped 18 per cent and 17 per cent respectively.

Fidelity’s research also showed a gender gap when it comes to planning for retirement, with 31 per cent of men confident in making their own financial decisions compared with just 20 per cent of women.

Alongside this, 28 per cent of women had not heard of Pension Wise, as opposed to 21 per cent of men.

Tony Catt, compliance officer at Anthony Catt Limited, said there are a fair few issues about pension freedoms that caused various parts of financial services some problems.

He said: “It is a brave person that organises their retirement without taking advice because most people would not know what options are available to them.”

ruth.gillbe@ft.com