Consulting a financial adviser is key to feeling confident about retirement

Research from pensions and retirement specialist LV= highlights the benefits of taking financial advice for retirement planning.

The LV= Wealth and Wellbeing Monitor*  reveals that much of the general population is confused and disengaged when it comes to retirement – but those who take financial advice are much more likely to be confident and better prepared.

Clive Bolton, Managing Director of Savings and Retirement at LV=, said: “The research highlights the enormous value and benefit financial advisers provide for their clients.”

The LV= Wealth and Wellbeing Monitor – a quarterly survey of 4,000 UK consumers – shows most people are not confident about their retirement plans:

• 59% of non-retired UK adults said they are not confident they have saved enough for retirement
• Two-thirds (66%) of non-retired women are not confident they have saved enough for retirement, compared to only half (50%) of non-retired men.

This lack of retirement confidence is a result of many not knowing how much they have saved in their pension, or how much they might need to retire.
• 30% of non-retired UK adults do not know when they are going to retire, while nearly one in four (23%) of those aged 55-64 do not know when they will retire
• Only 14% of non-retired UK adults have looked at their pension value in the last year and only 8% have  researched how much they would need saved in their pension for a comfortable retirement
• But although so many people are not confident about their retirement prospects, only 7% have consulted a financial adviser about retirement.

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Those who are confident about retirement are more likely to have consulted a financial adviser, increased pension contributions and discussed plans with their partner
• Two-thirds (65%) of non-retired people who have consulted a financial adviser are confident about their retirement plans vs. 41% of all non-retired UK adults.
• More than half (55%) have increased pension contributions and researched how much they need in retirement and 56% have discussed retirement plans with their partner

Mass affluent consumers are more engaged with retirement planning
The research highlights how mass affluent people – those with assets of between £100,000 and £500,000 excluding property – are more engaged with retirement planning. Mass affluent people are a core target market for financial advisers and the research reveals:

• A quarter of mass affluent adults (25%) are planning to retire before the state retirement age, compared to 12% of the general population
• Those approaching retirement (aged 55-64) are almost twice as likely (18%) as the general population of this age (10%) to have consulted a financial adviser
• Those approaching retirement (aged 55-64) are much more likely (36%) than the general population of this age (23%) to have looked at the value of their pensions

 

Clive Bolton, Managing Director of Savings and
Retirement at LV=, added:
“LV=’s Wealth and Wellbeing Monitor highlights how many people are understandably worried about the future in the current situation. However it’s striking to see how consulting a financial adviser makes them become much more confident about their finances and retirement plans.

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“Saving some money in cash and keeping it aside for emergencies makes sense but too much money means people can miss returns from rising investment markets. A good financial adviser will help clients make the most of their savings by creating an investment portfolio to match their attitude to risk.

“Advisers have a vital role to play when it comes to long-term saving for retirement. There are so many variables for savers to consider: How much should I save? What assets I should invest in? What age should I retire?  How much money should I draw from my pension?  .

“Taking financial advice is a good way for people to find a way through the maze of retirement planning. A financial adviser will take stock of their client’s financial situation, make them think hard about the retirement they want and what they need to do to achieve it.

“LV=’s research indicates that those people who are confident about their retirement plans are much more likely to have consulted a financial adviser, discussed their retirement plans with their partner and increased their pension contributions.

“The cost of taking good financial advice represents is money well spent. Research** indicates that people who take financial advice are better off in retirement than those who don’t.”

Notes to editors

*LV= surveyed 4,000 nationally representative UK adults via an online omnibus conducted by Opinium in December 2020.
** International Longevity Centre


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