Much has been said about the retirement savings crisis in the UK, but the latest data from unbiased.co.uk’s and Standard Life’s Value of Advice Report1 shows it is not just an absence of retirement planning overall, but also a significant lack of knowledge amongst those who do save for ‘life after work’.
Seeking advice brings knowledge
Unbiased.co.uk’s and Standard Life’s Value of Advice Report clearly shows that seeking independent financial advice doesn’t just pay with regards to the amount of money saved (making advised savers as much as £232 a month better off in retirement), it also leaves retirement savers better engaged with their finances. Of those who didn’t take advice on their retirement savings, just over half (51%) said they didn’t know how much was currently in their retirement fund, with the number significantly dropping to just over a quarter (27%) of retirement savers who have taken advice on their retirement planning needs.
Women who didn’t take advice on their pension provision are a group with a particularly large knowledge gap, with almost three in five (58%) women with a retirement savings pot saying they don’t know how much they have accumulated in value (compared to 30% of advised female pension savers). The knowledge gap between advised and non-advised pension savers was also apparent amongst men, where 46% of non-advised retirement savers didn’t know how much they had accumulated in their retirement savings pot, compared to 24% of men who did seek advice.
Today’s 35-54 year olds are the generation least in touch with their retirement savings, with just 41% of those who haven’t sought financial advice on their retirement funds knowing the value of their savings compared to 71% of advised people in that age group.
Please indicate the total value of your retirement funds
Karen Barrett, Chief Executive of unbiased.co.uk, comments, “Our Value of Advice Report shows there is a real benefit from taking advice, leaving pension savers better informed and feeling more engaged with their finances, which inevitably will help them to make well thought out decisions on their financial situation.
“Retirement planning is the buzz word of this generation - we know it is consistently the top trigger for consumers to seek independent financial advice. But it’s often this step into taking action that we stumble upon, which is where advice can really play a big factor. Each one of us is different and our individual circumstances need an individual approach to plan for our retirement in the best possible way and that is where an independent financial adviser can play an important role.
Dave McGovern, Head of Retail Marketing at Standard Life, commented: “Our research has shown that there is a knowledge gap between those who have taken financial advice and those who haven’t. This is clear evidence that engaging with a financial adviser, who will not only review your current financial position but work with you to create a long-term financial plan, prompts you to have a clearer awareness of your overall financial health. This is the first step to encouraging a greater savings culture that is sorely needed.”
To seek help from an IFA who can walk you through your options, visit www.unbiased.co.uk to carry out a free and confidential search.
For more information contact:
Anna Schirmer/ Emily Falla/ Maddy Morgan Williams, Lansons Communications: 020 7294 3682
For expert commentary or case studies from over 200 media-friendly advisers, journalists should visit www.unbiased.co.uk/bluebook.
About unbiased.co.uk, the professional advice website
The unbiased.co.ukportal is a free and confidential UK-wide search matching consumers with local professional advisers. Their searches enable consumers to find professional advisers by postcode, area of specialism, qualification and payment method. In 2011, unbiased.co.ukfulfilled around 450,000 searches for local, professional advice.
Unbiased Ltd promotes the benefits of financial advice to consumers. Unbiased Ltd is supported by the following companies:
Unbiased Ltd - Registered Office: 12-14 Berry St, London, EC1V 0AU. Registered in England: No. 06775878)