6 out of 10 British people do not take financial advice before retiring

11 Apr, 2022

According to new researchfrom wealth manager, Brewin Dolphin, 60% of British retirees have started accessing their pension pot without taking any advice from a financial adviser prior to retiring. Additionally, 78% of British people who have retired do not receive ongoing advice on how they can fully use their pension pot as they spend or draw it down. It is a worrying trend that could see savers and retirees make bad financial decisions at a crucial stage in their life, leading to negative consequences for their financial situation in retirement.

Richard Harwood, financial adviser at Brewin Dolphin, comments: “Retirement planning is a personal, complex, and confronting challenge which many people will struggle with, impacting their confidence to spend appropriately and fully enjoy retirement. These latest figures are increasingly concerning; retirees are dipping into their hard-earned savings without potentially thinking long-term and planning for the future. There is a real case of ‘longevity risk’, or the possibility that you will outlive your money.

“Speaking with a financial adviser helps mitigate this risk by providing a comprehensive plan and putting minds at ease. From navigating pensions and how to plan properly for your retirement, to manoeuvring changing personal circumstances and setting aside money for future generations, financial advisers have seen it all and can help. Financial advisers typically do the first meeting for free, and after that you’ll at least know if you’re roughly on the right track and what your options might be, so you can feel more comfortable with your decisions. Understanding what money you have for your retirement and how to spend it wisely is no mean feat, but that’s where preparation and speaking to an expert can be invaluable”.

[1] The research was conducted by Find Out Now in February 2022 through a survey of a thousand people aged between 55 and 75.