There is a noticeable money gap between retirees who take financial advice and those that don’t.
That’s according to a study done by a think tank from the International Longevity Centre UK (ILC).
The report says that retirees who take financial advice are, on average, £47,000 better off in their retirement years than those people who take no advice.
According to the study, the gap between advised and non-advised people is especially true for less affluent groups in our society.
The think tank found that people who receive advice were ‘more confident, worry less and are better prepared for retirement’ than those who do not take advice.
However, despite this latest study showing that there are clear benefits to taking advice, both in terms of financial and emotional wellbeing, fewer than one in six people in the UK are currently receiving financial advice.
As a result the ILC are urging the government to do more in a bid to encourage more people to seek financial advice, especially surrounding retirement planning. The ILC says that professional financial advice has never been more important, due to changes in pensions and financial service regulations which massively increased the responsibility heaped on individuals to plan for their own retirement.
The importance of professional advice is something Lifetime highlights at every opportunity.
There is uncertainty in all aspects of our lives and that has been compounded further in 2020 by the effects of the worldwide COVID-19 pandemic. There is uncertainty, without a doubt, when it comes to finances. The responsibility of managing money is huge but it has never been as much of a burden as it is right now.
When it comes to planning for life after work, what was once a simple matter of reaching retirement age and receiving the promise of a steady income has become a complicated puzzle, where there are no set dates to work towards for employees or employers, and anxiety levels have increased because few people actually understand what income they will get.
In years gone by the majority of companies offered pension schemes that were fully managed by Trustees. These days many people are members of different types of schemes that actually require decisions to be made and choices to be explained and understood.
Lifetime’s retirement specialists give you an accurate picture of what you need to do to achieve your post-retirement plans, dreams and aspirations.
They will give you advice on your best course of action before, during and at retirement.
Get in touch if you want to chat about your retirement plans.