IFA's preferred for retirement advice

IFAs remain the preferred source of information about retirement planning and finances, above bank managers, solicitors and brokers, according to new research from LV=

The LV= State of Retirement report shows that people facing retirement in the UK are more confused than ever about the complexity of current tax legislation and rules. It also reveals that almost half (49pc) of people facing retirement have chosen to consult an IFA, compared to just 4pc who have consulted a solicitor or a broker, and 16pc who have consulted their bank manager. According to the research, seven out of ten (70pc) over 50s surveyed admitted they are uncertain about what legislation is correct, equating to an anxious majority of almost 7m people facing retirement.

Despite their doubts, the majority of those facing retirement (56pc) haven't taken professional financial advice at all about their overall financial situation, level of savings, and income in retirement, which equates to 5.5m people in around 3.5m households. Rodney Cook, LV= life & pensions managing director, said: "Our research shows that there is a massive opportunity for financial advisers in the UK. Around 3.5m pre-retired households are yet to take any professional financial advice, which is worrying as so many people facing retirement admit that they don't understand financial planning rules and legislation.

"And this is set to be a real growth area for the financial advice industry, as people are living longer than ever before, so will need effective retirement solutions to maximise their income. This research highlights how important the role of the independent financial adviser is in helping the over 50s in the UK to make the most of their money, as too few people are taking proper advice on how to manage financially in retirement. With an ‘anxious majority' of seven million pre-retirement people admitting they are confused by the legislation surrounding pensions and retirement planning, it is clearly vital that people take advantage of professional advice to maximise their retirement wealth, to help ensure their comfort in old age."

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