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.”