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Why are we leaving financial advice so late?
Retirment planning is the main reason we seek out financial advice, but shouldn't we be doing this much earlier?
by Michelle McGagh on Aug 21, 2012 at 09:23
Retirement is a big change, both socially and financially, so it is only right that people seek out financial advice on moving into their twilight years.
In fact figures show retirement is the main catalyst for seeking advice, but if we’re really going to live the life we want to in old age shouldn’t we be taking advice a lot earlier?
Figures from adviser search website unbiased.co.uk shows retirement is the main catalyst for seeking advice, with 32% of inquiries to the website focused on retirement planning.
People are being hit by a double whammy of smaller pension pots where they haven’t saved enough and poor annuity rates that offer lower-than-anticipated income. It’s no surprise that you may need an expert to help you make the most out of your money.
But if we really want to make the most of our money and notch up multiple holidays a year in retirement, then surely we need to take advice earlier.
Taking advice at retirement is great but seeking advice earlier in life would help people plan for their retirement they want to lead. Yes, pensions and grey hair may seem a long way off to someone in their 20s or 30s but the reality is the early you start saving the better.
For those who are smugly thinking ‘I save already’, do you know if you’re saving enough? An independent financial adviser (IFA) would help you navigate the treacherous pensions path to ensure you were saving tax-efficiently and to full capacity.
So why don’t people, older or younger, get advice? Many people will say they can’t afford it, but if figures from JPMorgan Asset Management are anything to go by, affordability isn’t the only reason.
In a survey of 2,000 mass affluent and high-net-worth clients, just 13% said they would seek out regular on-going advice.
It’s worth noting that when the report says mass affluent and high-net-worth it is not solely talking about millionaires, the 2,000 have household incomes of over £50,000.
Although those wanting on-going advice was small, 40% said they would seek advice for certain tasks and overall 80% would seek advice of some sort.
This shows that the old accountant and solicitor model, where you only see them if you need them, pervades Brits’ collective conscience and we’re unwilling to keep paying for a service unless there’s a specific cause for it. I am also guilty of this.
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