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The vital role of financial advice in a “new era” of retirement planning

Sanlam UK’s Which Way Forward? report finds:


  • A quarter of non-retired over 60s become more proactive in planning for retirement after speaking to an adviser.

  • However, three quarters (74%) of those who have retired in the last five years did not consult a financial adviser, and nearly one in five (18%) didn’t consult one because they couldn’t afford it.

Financial advice will become increasingly vital if the UK public are to become more engaged with retirement planning, finds our new research.
Findings from our recent ‘Which Way Forward?’ report – which compares the attitudes of 1,000 people who have retired in the last five years with 1,000 over-60s approaching retirement – reveals that a quarter of non-retired over 60s became more proactive in their retirement planning after speaking to an adviser. However, it also found that 74% of the recently retired did not consult a financial adviser at all, with one in five of those saying this was because they could not afford to.
The Financial Advice Market Review recently published recommendations that called on the government to allow people to access money from their pension pot to access advice in the run up to their retirement. And it seems that these measures are much needed, with over half (52%) of those who are nearing retirement saying they haven’t started to consider a financial plan, and 40% feeling unprepared for retirement.
And whilst the Chancellor’s announcement of the Lifetime ISA during the Budget has been greeted with much interest, it crucially doesn’t help make the myriad options for both savers and new retirees any clearer. And with 16% of those nearing retirement putting off doing anything about their retirement because “it all seems too confusing”, it’s clear that help is needed.
Elliot Silk, Sanlam UK, comments: “With nearly one in five non-retirees in their 60s saying they can’t afford a financial adviser, it’s clear that advice needs to be made more accessible, and fast. The government has committed to consult on the recommendations of the Financial Advice Market Review, notably that a portion of pension pots be made available early to pay for the cost of advice. But the timing of that consultation has been left open, which is concerning given the immediate and pressing need to help people better understand their options in retirement.
“Retirement is changing, and our research shows how quickly that change is occurring. We hope that the Financial Advice Market Review opens up the options available to the consumer, but the value of professional advice can’t be under estimated. The population is aging, and in future years ‘retirement’ could be 30 years or more. Planning for this retirement can only happen once, and the state simply cannot afford to fund this growing generation of older people to live the retirement they expect. If we don’t do more to help people understand the options available to them, both when preparing for retirement years and in retirement itself, the results could be catastrophic.”
If you would like to read our latest research, the full Which way report? is available here or you could watch our short video below. 
To speak to an adviser about your retirement options, please email us at letstalk@sanlam.co.uk and we will be happy to help you.

Date Issued: 21.4.16

Please remember any views or facts expressed above are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness. Any expressions of opinion are subject to change without notice. None of the information should be regarded as advice. Past performance is not a reliable indicator of future results. Investing involves risk and the value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the original amount invested. Any tax treatment is dependent upon individual client circumstances and may be subject to change.

Sanlam is a trading name of Sanlam Wealth Planning UK Limited (Reg. in England 3879955) and English Mutual Limited (Reg. in England 6685913). English Mutual Limited is an appointed representative of Sanlam Wealth Planning UK Limited which is authorised and regulated by the Financial Conduct Authority.

Registered Office: St. Bartholomew’s House, Lewins Mead, Bristol, BS1 2NH.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.