Some 31% of Brits either don’t know where to go for retirement information or would not seek any kind of support, according to Hargreaves Lansdown
The survey comprising of 1,500 people highlighted the barriers Brits face in terms of access to retirement information and planning.
Over a quarter of over 55s said they wouldn’t seek support in the run up to retirement, while those who do get advice would go to friends and family as their first choice.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “If they are very knowledgeable then this might work out but the chances are the gaps in their knowledge mean you aren’t getting the whole story and you risk making mistakes.”
Morrissey highlights that consulting family and friends should be part of a ‘wider planning strategy’ that includes regulated financial advice or guidance services.
Workplace benefit
The survey also showed that 16% of respondents would receive support from the workplace, which Dean Kemble, chief commercial officer at GSB, believes should be offered as a workplace benefit.
“I have seen fantastic success in holding ‘pension surgeries’ for employees who are given a 30 minute slot to speak to a financial planner who can advise them on their workplace pension,” added Kemble.
Not only should employers provide access to financial planning, industry bodies need to provide better signposting of the available directories of qualified advisers to non-advised consumers, according to Mike Morrow, chief commercial officer at Parmenion.
He said: “I believe non-advised consumers would find it easier to access professional retirement financial advice if it were easier to actually find a trusted adviser.”
Morrow believes that it is important to articulate to clients not only the tangible benefits of seeking advice, but also the non-tangible benefits of it.
“Most people wouldn’t attempt to re-wire their house, the stakes are too high so they employ a professional,” he added. “The tangible benefit is a re-wired house but there’s also real value in the peace of mind that comes with knowing it’s been done by an expert.”
Perception gap
The Lang Cat carried out its own consumer research that found the advice sector is suffering from a ‘perception gap’. Those who were receiving advice were happy with the experience, while those who were unadvised had the perception that it did not provide good value for money.
Mike Barrett, consulting director at the Lang Cat, said: “We believe this needs a collective voice, with advisers, trade bodies, providers and regulators all working together to improve the perception of the advice sector.”
Therefore, by trying to alter this perception and highlighting the benefits that accessing professional advice can have may encourage more people to access support when it comes to their retirement.
Jonathan Hawkins, principal consultant and pensions expert at Bravura, thinks that this is where pensions dashboards have a huge and exciting part to play to clear the ‘pensions fog’.
He said: “With the right promotion there is a huge benefit for consumers to see all their pensions in one place and access further information, digital advice or guidance and then for those who want it, to access a full advice service.”
