This is despite the fact that 39% of people are not confident they will be able to retire comfortable and a further 38% of said they have never estimated their income needs in retirement.
The figures highlight how isolated some people are when it comes to making retirement plans, according to Aegon’s Retirement Confidence Survey.
Steven Cameron, Pensions Director at Aegon said: “While some people may be equipped to make their own decisions about their retirement plans, it’s quite concerning that so many people are going it alone when many seem to be lacking the confidence and information to tackle retirement planning. There are some decisions where advice could make all the difference, and be the factor that determines whether people feel in control of their finances and have a clear idea about what their financial targets are.
“Many people will join a pension scheme by default through automatic enrolment. It’s good news that an extra 8 million people have now taken the first step to saving for retirement and may not need advice at that stage. But as people begin to make serious pension plans or get closer to retirement we always recommend they seek advice to ensure they make the right decisions including around how to make the most of the new pension freedoms.
“When it comes to retirement income, advisers can help you arrive at the right mix of income flexibility and security to cover the essentials. They will also assess how much investment risk you are prepared to take and recommend a suitable investment strategy.
They can also optimise tax planning not just to avoid you paying unnecessary income tax, but also if you want to leave an inheritance to loved ones on your death. There’s ongoing value in seeking adviser support periodically throughout retirement to review investments, assess if your income levels remain appropriate and check you’re not at risk of running out of money.”
Cameron continues: “For some people the perceived price tag that comes with advice immediately rules it out as an option. But people need to realise that there are various options for receiving advice and it might be less expensive than they imagine. Some people might have options available to them through their employer and those in their 50s could benefit from some guidance from Pension Wise. Whatever the situation, people shouldn’t feel alone when planning for retirement, there are options out there.”
• More than three quarters (77%) of people are not currently using a financial adviser’s services for retirement planning
• 38% of people have never estimated their income needs in retirement
• 39% of people lack confidence in their ability to retire comfortably
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