DIY Investor Magazine
/
2015 Issue
10
THE ADVICE GAP: A PROBLEM SHARED
Around a quarter of those surveyed said that they
did not know what to do to make a positive impact to
achieve their goals in retirement and in many instances
professional advice could be shown to have made a
significant difference.
Twice the number of people using financial advisors
felt they had made adequate provision compared with
the non-advised and believed that they could improve
performance by a better investment strategy rather
than simply saving money.
28% of people that are non-advised believe that the
State Pension will be their main source of income as
opposed to 15% of those that use an adviser who tend
to take a longer term view in terms of their financial
planning.
27% of the non advised group had yet to start to plan
for retirement compared with 4% of those that are
advised with the proportion of those expecting to retire
at age 65 being 42% for the former group and 51% for
the latter.
More than double the proportion of the advised group
knew exactly what the pension reforms meant to them,
although this was still only 16%; those unadvertised
appear unlikely to take advantage of the government’s
Guidance Guarantee as 83% said they had not heard of
it.
In an interesting conundrum 35% said they wanted the
certainty of guaranteed income in retirement yet 21%
said they wanted the flexibility to access their cash if
they needed it – suggesting that the optimum solution
may be some form of hybrid approach.
15% of those aged over 55 said that they
definitely had not made enough provision
for their retirement fuelling concerns of a
sizeable problem to come.
