Financial Advice Market Review  

One in five don’t see point of financial advice

One in five don’t see point of financial advice

One in five people aged 50 plus don’t think they would benefit from speaking to a financial adviser about their retirement income.

A poll by Retirement Advantage revealed that 42 per cent of those aged 50 plus plan to speak to a professional financial adviser about their retirement finance options, which is up from 38 per cent last year.

Just over a third of the over 50s (35 per cent) said they will rely on their pension provider, with one in six (18 per cent) saying they would consult their employer.

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Trust and cost were still the main barriers for people who said they didn’t plan to consult a financial adviser about their retirement options. 

A total of 42 per cent of 1,005 people aged 50 plus who were polled in June who don’t plan to use a financial adviser said they are put off by the cost, up from 38 per cent of those in the same age group polled last year. 

However Retirement Advantage’s survey showed trust in advisers has improved over the last year, but one in three (31 per cent) still think trust is an issue. 

A total of 31 per cent don’t feel consulting a professional adviser is necessary, while 18 per cent think it would not bring any benefit, and 15 per cent said they trust their pension provider to provide the advice they need.

Andrew Tully, pensions technical director at Retirement Advantage, said: “Retirement is a complicated business and it is very easy to make costly, and often irreversible, mistakes. 

“So it’s encouraging that people facing potentially life changing decisions are planning to go and see a professional financial adviser. 

“The increase in trust in professional advisers over the last year is positive. However, the increase in those citing cost as a reason for not consulting an adviser is disappointing, particularly in light of the one in six that say they would trust their pension provider to give them the information they need.”

Back in July a report revealed those who receive financial advice are on average £40,000 better off than those who don’t.

Research, published by the International Longevity Centre and Royal London, found those who received financial advice between 2001 and 2007 accumulated significantly more liquid financial assets and pension wealth than those who didn’t by 2012 to 2014.

Keith Richards, chief executive of the Personal Finance Society, said the results of Retirement Advantage’s poll were disappointing given the many surveys that showed how much better off individuals could be by seeking advice.

He said: “It is disappointing but not surprising. 

“The Financial Advice Market Review flagged the value of advice but the government needs to increase awareness. We are calling on the government to do more to promote the value of financial advice.”