Most retirees are confused by the complexities of pensions and tax legislation but are refusing to seek financial advice, an LV= study suggests.
The firm says seven in every ten individuals surveyed for its ‘State of Retirement’ report feel legislation is changing so fast that information on what is ‘right’ one month, may be ‘wrong’ the following month.
In addition, it says 56% of those surveyed have yet to seek professional financial advice, representing a “massive opportunity” for IFAs according to Rodney Cook, LV= life and pensions managing director.
“Over three million pre-retired households are yet to take any professional financial advice, which is worrying as so many people facing retirement admit that they don’t understand financial planning rules and legislation,” Cook says.
“And this is set to be a real growth area for the financial advice industry, as people are living longer than ever before, so will need effective retirement solutions to maximise their income.”
Cook says more good news for advisers is that they remain the preferred source of information about retirement planning and finances, above bank managers, solicitors and brokers.
“This research highlights how important the role of the independent financial adviser is in helping the over 50s in the UK to make the most of their money, as too few people are taking proper advice on how to manage financially in retirement,” Cook says.
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