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Retirement still the biggest reason for seeking advice
Retirement is the reason most people seek financial advice, but it's the advice you take in earlier years that will affect you most.
by Michelle McGagh on Aug 20, 2012 at 14:10
Retirement is the main driver for people seeking independent financial advice, but there are fears that individuals are leaving financial planning too late.
Figures from unbiased.co.uk, a website that helps consumers find independent financial advisers (IFAs), show 32% of all enquiries related to retirement advice.
Advice on investment and savings is the second most popular search, with 23% of people looking for IFAs to advise on this area; 14% need help with mortgages; 12% need help with individual savings accounts and open-ended investment companies; 12% with stakeholder pensions; 7% tax planning; 8% group pensions; 4% personal protection; 4% investment trusts; and 3% equity release.
Benefits of advice
Karen Barrett, chief executive of unbiased.co.uk, said getting advice on retirement planning can have a positive effect on your old age. Of those who have been advised, 39% have a private pension, compared with 21% of people who do not take advice.
‘Living a comfortable life post-retirement is something that we all look forward to. Yet many of us now need to think about putting away enough of our income to ensure this and to prepare for longer life expectancy,’ she said.
‘In order to preserve our current standard of living, we need to make sure we have the right pension plans in place. And to make better, more informed decisions for your own future, it’s vital you seek advice.’
Don't leave it too late
However, AXA Wealth head of retirement planning Andy Zanelli warned that people were leaving financial planning too late, and not saving enough to fund the additional years that they want to spend in retirement.
‘It is very well known that we are living longer and as a result will be spending more time in retirement, a period that many wish to the longest holiday of their life,’ he said.
‘However, many of us are not saving enough to fund the additional years… As a result we are faced with the prospect of working longer or not having sufficient income to fund our twilight years.
‘An individual’s financial health in their later years will be shaped by what they have done in the early years, their long-term attitude towards saving, and a clearly defined financial plan… The pension time bomb is ticking and consumers need to be aware of the importance of long-term financial planning.’
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