Nine out of ten IFAs (88pc) believe increasing numbers of people will be unable to retire when they wish and retirement ages will rise significantly over the next ten year, according to Aegon's IFA Insights Research.
A total of 71% of IFAs say people are already resigned to a significant reduction in their standard of living in retirement due to extra financial pressures.
These include parents supporting their children for longer (cited by eight out of ten IFAs) and the fact people will receive less inheritance (74% of IFAs).
Graham Dumble, AEGON’s Director of Risk & Regulation, says: “The third wave of the AEGON IFA Insights survey reveals that the IFA community expects those planning for retirement to face increasing pressures from all sides. So it’s not surprising they expect the British public will have to work longer into their retirement years or accept a lower standard of living in retirement.”
When addressing this savings gap almost nine out of ten IFAs would recommend investing more in pensions, though the same number would recommend alternative means of investing for retirement showing a desire to create a balanced portfolio.
Nine out of ten IFAs also believe pensions are suffering from a lack of consumer trust and need more promotion. When asked what measures would be successful in encouraging people to invest more in pensions, IFAs rated improved tax incentives, increased confidence in the industry and incentives to encourage employer participation.
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