Retirement: Advisers overlooked as over 50s turn to web

Professional advisers are increasingly being overlooked by the over 50s as they turn to the internet instead for retirement guidance, a new report suggests. Research by Retirement Advantage found a greater proportion of this age group have been looking to the web (43%) rather than professional financial advisers (38%) this year. Last year, the two were equal at 44% each.The biggest change was a rise of 5% in those saying they have gone to their pension provider.Andrew Tully, pensions technical director at Retirement Advantage, said: “A clearer picture is emerging of how over 50s approach financial decisions. They’re now looking to do their own online research ahead of getting professional financial advice.“What we’re increasingly hearing from consumers is that they’re bringing together a combination of professional advice and their own online research.“Advisers who maintain their appeal in the future will be those who integrate a digital element into their offering.”The survey also found there had been an increase in the proportion of consumers who lacked trust in advisers, rising 3% to 38% since the previous report.The other most common reasons for not using advisers have broadly remained the same, the company said, with the cost of advice still mentioned frequently (38%).Some also felt that professional advice would not bring any benefit (28%) and that it was unnecessary (29%).In the wake of the vote to leave the EU, the gap between a preference for certainty and a desire for flexibility in retirement income has widened among the over 50s, the report also showed.When asked about retirement income, over 50s increasingly ranked certainty as their top priority since the vote to leave the EU (46%, +3%), while the desire for flexibility has waned in equal measure (31%, -3%).Meanwhile, instant access (14%) and income growth (9%) continue to be seen as lesser, complementary income priorities. The research compares views pre and post the Brexit result.Mr Tully said: “The over 50s clearly want to take advantage of the pension reforms. However, following the vote to leave the EU, we find they are prioritising safety amid turbulence in the wider economic and political environment.“While people still want to have some flexibility to cope with whatever the future may bring, it doesn’t always translate into practice. Whether it’s a natural reaction to economic fear, or simply people not looking for financial advice, we are seeing fewer over 50s realise their needs for financial flexibility in retirement.”

Retirement: Advisers overlooked as over 50s turn to web

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