Record numbers rely on employers for pension advice: Barings

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Record numbers rely on employers for pension advice: Barings

Record numbers of people are relying on employers for retirement planning advice, according to research from Baring Asset Management.

Of the 1,548 non-retired UK adults surveyed, 13 per cent of non-retired people - equivalent to nearly five million individuals - are looking to their employers for advice on retirement.

This figure is up from 9 per cent in 2014 and 7 per cent in 2013.

The younger segment - aged between 18-24 - was found to be twice as likely to look to their employer for retirement planning than those aged between 55-64.

Barings found 14 per cent think it is the responsibility of their employer to ensure that they fully understand the asset allocation of their pension fund, up marginally from 13 per cent in 2014.

However, financial advisers are still a significant source of advice for retirement planning, used by just over a quarter of respondents, up 1 per cent from last year’s survey and 21 per cent in 2013.

Rod Aldridge, head of EMEA wholesale distribution at Barings, said that the results were an indication of the central role workplaces play in people’s lives and the increasingly significant distribution challenge.

“It is also very encouraging that IFAs continue to be key as the importance of independent advice remains fundamental to effective financial provision in retirement.”

The number of people turning to friends and family for retirement planning advice jumped to 23 per cent in 2015, from 16 per cent in 2014 and 12 per cent in 2013.

This trend was particularly acute for those aged 18-24, with 40 per cent saying they relied on friends and families, compared to just 9 per cent of 55-64 year olds.

Around 20 per cent of those surveyed said they were most likely to go to a bank or building society for advice, a rise from 14 per cent in 2014, and one in five said they do all their financial planning themselves.