Compulsory financial advice at retirement?

Research from retirement specialist Retirement Advantage has found that two-thirds (65%) of people aged 55 and over who are not yet retired believe that it should be compulsory to receive financial advice at retirement. The provider is calling for a clear hand-off to regulated financial advice when people are seeking help to take the next steps at retirement.

The research survey was carried out online by ComRes, with 1,000 UK residents aged 55 and over who are not retired, between February and March 2015. More than one third (35%) of people polled said they were not comfortable managing their pension in retirement, which suggests that these people will require on-going advice through their retirement journey. Only 11% of people said they were very comfortable managing their pension in retirement.

The research also shows that 62% of people who plan to use their pension funds before retiring also think that financial advice should be compulsory. This follows the introduction of the new pension freedoms, which allow people with defined contribution pensions greater flexibility when accessing their savings.

Quoted in the Retirement Advantage published article, Andrew Tully, Pensions Technical Director at Retirement Advantage, said:

‘People are making difficult, life-changing decisions, made all the more complex by the new pension rules. We’re seeing the majority of people recognise that without financial advice they may fail to realise the full implications and make decisions that end up costing them dearly.’

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