Financial advice boosts pension savings confidence

Taking financial advice considerable boosts the confidence of UK retirement savers, according to a new report. Only 41% of non-retired UK adults were confident they will have saved enough for retirement in a new survey, but taking financial advice boosted confidence. Of those who had consulted a financial adviser, 65% were confident they will have saved enough for retirement, according to the LV = Wealth and Wellbeing Monitor. However, only 7% of those surveyed had consulted a financial adviser about retirement. Mass affluent (those with assets of between £100,000 and £500,000 excluding property) consumers were more engaged with retirement planning. Those approaching retirement (aged 55-64) were almost twice as likely (18%) to have consulted a financial adviser as the general population in this age group (10%). The same age group of mass affluent consumers were more likely to have looked at the value of their pensions (36% in comparison to 23% of the general population). A quarter of mass affluent adults (25%) are planning to retire before the state pension age, compared to 12% of the general population. The LV= Wealth and Wellbeing Monitor is a quarterly survey of 4,000 UK consumers. Two thirds (66%) of non-retired women were not confident they had enough saved for retirement, compared to half (50%) of non-retired men. Of those surveyed, 30% of non-retired UK adults did not know when they are going to retire. Nearly a quarter (25%) of those aged 55-64 did not know when they will retire. Clive Bolton, managing director of savings and retirement at LV=, said: “LV=’s Wealth and Wellbeing Monitor highlights how many people are understandably worried about the future in the current situation. However it’s striking to see how consulting a financial adviser makes them become much more confident about their finances and retirement plans. “Advisers have a vital role to play when it comes to long-term saving for retirement. There are so many variables for savers to consider: How much should I save? What assets I should invest in? What age should I retire? How much money should I draw from my pension? . “Taking financial advice is a good way for people to find a way through the maze of retirement planning. A financial adviser will take stock of their client’s financial situation, make them think hard about the retirement they want and what they need to do to achieve it. “LV=’s research indicates that those people who are confident about their retirement plans are much more likely to have consulted a financial adviser, discussed their retirement plans with their partner and increased their pension contributions. “The cost of taking good financial advice represents money well spent.”

Financial advice boosts pension savings confidence

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