- Financial advice boosts retirement savings levels by nearly £100 per month
- Advised savers benefit from an additional income of £3,654 every year of their retirement
- People who receive advice feel better prepared for their retirement than those who don’t
Those were some of the key points to emerge from new research carried out by unbiased.co.uk and AXA Life Invest – which also showed that taking financial advice encourages people to save more for retirement and helps them to feel better prepared for their ‘golden years’.
The research found that nearly half (43 per cent) of UK savers who are approaching retirement increase their retirement savings levels by £98 a month as a direct result of taking financial advice, boosting their savings levels from £89 a month (pre-advice to £187 (post-advice).
Advised UK savers who put a)way an additional £98 monthly as a result of taking financial advice would receive an additional income of £3,654 every year of their retirement, based upon a pension pot of £100,000.
When looking at UK savers over 40 who do not receive financial advice, the research showed that almost half (45%) currently save no money whatsoever for their retirement, while 52% say they do not feel prepared.
The research also suggested that people who seek advice have more peace of mind about their future than those who do not.
Looking at all UK savers from 18 years and older who have not yet retired, over half (54%) of the advised group feel well prepared for their retirement, compared with just 14% of those who have not received financial advice.