In my Job as a Financial Adviser, I try to communicate and demonstrate, and if by doing so effectively, I can educate my client in my one-to-one client interactions. And that is important because as people move from the world of work to one of retirement, financial planning can be genuinely life changing.
However, recent research from YouGov, the Research Group, to coincide with the third anniversary of Pension Freedoms, has shown that the wider public awareness of the value of advice is lower than might have been hoped.
Only one in 3 expect to seek advice
The introduction of Pension Freedoms (more of that in a moment), coupled with heightened interest in Defined Benefit Final Salary pensions, mean that we, like most advisers and planners I speak to, are incredibly busy.
Despite that, the survey found that the ‘value of advice’ message isn’t getting through to most people; only 32.08% of the over 50s who have not yet retired expect to seek financial advice about their retirement in the future.
Unsurprisingly, the likelihood of taking advice increases as people get closer to more traditional retirement ages. Even so, millions will retire without seeking any form of financial advice.
Pension Freedoms represent the single largest change to retirement planning during my financial services career. Used correctly it can help people retire more flexibly, moulding an income to their lifestyle and potentially leaving a financial legacy when they are gone.
Conversely, there’s no doubt Pension Freedoms also present a threat if poorly thought through decisions are made.
Pleasingly, among 50-64-year olds 63.84% of people are aware of the rules. However, that leaves approximately around 4.5 million adults potentially in the dark about Pension Freedoms; if they don’t know about them, how do they take advantage of the opportunities and avoid the threats?
Make no mistake, there’s a huge need for advice. Give us a call and lets have a chat.