top of page

Over-55s failing to take pension advice despite uncertainty

  • Writer: 7 Financial Planning
    7 Financial Planning
  • Dec 9, 2021
  • 2 min read

Updated: Jan 7, 2022


Just 16 per cent of those aged 55 and over have taken independent financial advice to discuss their retirement options and 14 per cent have used the government’s Pension Wise Service, research from NerdWallet has found.

This is despite 75 per cent of pension holders surveyed stating that they do not feel confident enough about their pensions to sort out their retirement planning without seeking advice from a professional.

The survey also showed that 11 per cent of those aged 55 and over have removed money from their workplace or personal pension to save into a savings account or cash ISA, while 9 per cent had removed money from their pension to invest it into a stocks and shares ISA.

In addition, a further 8 per cent said they had removed money from their workplace or personal pension to invest into property.

The company warned, however, that whilst these decisions may have been the correct thing to do, respondents may have taken a different approach after seeking advice on long-term financial goals, risk appetite and tax consequences of a pension withdrawal.

Indeed, the survey found that 7 per cent of over-55s thought they had reacted too quickly to market downturns in the past, such as those recently seen in March 2020 amid the onset of Covid-19, and 4 per cent had fallen victim to a pension scam.

NerdWallet senior pensions expert Richard Eagling commented: “Pension freedoms have proven very popular since they were introduced in 2015, but in opening up more options, they have also put retirees under immense pressure to make the right decisions when withdrawing money from their pensions.

“Unfortunately, very few individuals are accessing the guidance and advice available to them, leaving them vulnerable to making decisions that could be detrimental to their own retirement dreams.”

Previous research from NerdWallet suggested that this trend was more prominent amongst younger savers, with 36 per cent of pension holders aged 18-24 preferring to invest in stocks and shares ISAs, while 35 per cent favoured cash ISAs.

  • If you are unsure of how to achieve your retirement goals, Seven Financial Planning can help. We offer a wide range of impartial advice, always tailored to the individual client’s needs and circumstances. Contact us for a free, no-obligation consultation. Tel. 0191 380 4106 or email enquiries@sevenfinancialplanning.co.uk

Recent Posts

See All

Comments


Sign Up To Our Newsletter

For monthly industry insights as well as updates from 7FP, register to keep in touch.

Thanks for subscribing!

Our website offers information about investing and saving, but not personal advice. If you're not sure which investments are right for you, please request advice. If you decide to invest, read our important investment information first and remember that investment values can go down as well as up, so you could get back less than you put in.

T: 0191 380 4106

E: enquiries@7fp.co.uk

The Old Brewery

Castle Eden

Hartlepool

TS27 4SU

7 Financial Planning is a trading style of Aimee Financial Ltd, who are authorised and regulated by the Financial Conduct Authority, reference number 915784. You will find us on the FCA register.

7 Financial Planning Logo
Emblem for Chartered Financial Planners provided by the Chartered Institute Insurance.

We are committed to providing products and service of the very highest standards. If you feel that we haven’t lived up to your expectations in any way, we would like to know so we can put things right for you. If you have a complaint, make sure you contact us here. We will do all we can to resolve your complaint by the end of the next business day. If we can’t do this, we will write to you within five working days to tell you what we have done to resolve the problem, or acknowledge your complaint and let you know when you can expect a full response. If we haven’t issued our response within eight weeks from the date you first raised your complaint, or if you’re dissatisfied with our response, you can ask the Financial Ombudsman Service – www.financial-ombudsman.org.uk – for an independent review. The Financial Ombudsman Service will only consider your complaint once you’ve tried to resolve it with us, so please take up your concerns with us first and we’ll do all we can to help.

Registered in England and Wales. Registered office: The Old Brewery, Castle Eden, Hartlepool TS27 4SU.

Website by Belta Branding

bottom of page