Pensions  

Advice adds £3,654 to retirement income: Unbiased

Almost half of UK savers approaching retirement increase their retirement savings by £98 a month as a direct result of taking financial advice, according to research from unbiased.co.uk and Axa Life Invest that aims to quantify the value of advice.

From a sample size of 213 UK savers aged 40 and over who have sought advice on their retirement planning - taken from an overall sample of 1,486 pre-retirees - the study found that 43 per cent would receive an additional £3,654 of annual income in retirement, based upon a pension pot of £100,000.

Research suggested that were a UK saver were to experience investment growth of 5 per cent, their cumulative pension pot would be £63,595 greater than someone who had not sought advice.

Looking at those UK savers over 40 who do not receive financial advice, 45 per cent currently save no money whatsoever for their retirement, while 52 per cent said they were not prepared for retirement.

Unbiased.co.uk also surveyed 217 advisers in July, finding that 73 per cent thought they could best boost clients’ retirement income if they met the client 15 years out from retirement, a figure that fell to 22 per cent if they first met five years before retirement.

Simon Smallcombe, managing director of Axa Life Invest, stated that the firm supported this finding, proposing people should seek advice at least 10-15 years before retirement.

“Our research shows that people save more each month as a result of taking financial advice. People who seek advice earlier save substantially more than others and consequentially feel better prepared for their golden years.

Karen Barrett, chief executive of Unbiased, added: “The pensions world has seen a lot of change in the last few months, which has created even more options for consumers to consider, so having a professional adviser take you through the different options will help you to feel confident about the choices you make.”