According to a new study by the International Longevity Centre (ILC), people who take financial advice are on average £47,000 better off in retirement than people who did not.
The report titled, “Peace of mind: understanding the non-financial value of financial advice” highlighted the key points that: –
- People who take financial advice are on average £47,000 better off in retirement than people who do not. This is especially true of less affluent groups.
- People who receive advice are more confident, worry less and are better prepared for retirement than those who did not take advice.
- A significant advice gap remains with less than 1 in 6 people in the UK currently taking advice.
- Women are significantly less likely to take financial advice.
What are the key barriers to taking financial advice?
The report concluded that it came down to two key barriers: –
- Lack of awareness of what advice is (and is not).
- Lack of knowledge of where to find an adviser.
The ILC is calling on Government, the financial service industry and the regulator to work together to extend the take-up of advice and ensure an extra five million people understand enough to plan for later life by 2030.
Arunima Himawan, a research fellow at ILC, said: –
“It’s much too easy to put financial planning off, and even more so when we’re overwhelmed with the day-to-day, we’re worried whether we will make do today, or we simply don’t know where to start. So, having someone who can guide us along the way and can point us in the right direction is crucial. It is not just about maximising retirement income, but about making a plan, feeling in control and having peace of mind.
“But despite the many benefits of advice, far too few people gain access to the support they need to maximise their financial and mental wellbeing. This is not a new challenge and there are no easy solutions. We have been talking about the advice gap for well over a decade.”
“To achieve real change, we urgently need to see collaboration across industry and Government to better communicate the financial and non-financial benefits of advice, to explore ways of reaching a more diverse customer base and to increase the supply and efficiency of advice.”
Our view on the report.
Caroline Anstee, Managing Director of Anstee & Co said: –
“In my view, it has always been key to plan for your retirement. The sooner the better but starting later is better than not starting at all. Financial planning will help you set goals and provide you with an understanding of what you can achieve. Our team of independent financial planners will provide the structure and knowledge to help you achieve this.”
How Anstee & Co can help you with financial advice for your retirement.
We are a firm of Independent Financial Adviser (IFA’s). This means that the financial planning advice we give is unbiased. We will look at all the options available to you from the “whole of market”. Our experience covers all aspects of personal financial planning, including pensions, estate planning, protection insurance and savings and investments.
We would welcome the opportunity to have a coffee with you and discuss how we might be able to provide you with the advice and help you require. Why not contact us today.
We have offices located at: –
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Towcester, Northamptonshire
- London, Greater London
Due to the present government guidelines regarding COVID-19 (coronavirus) and social distancing we are making full use of video conferencing facilities such as: –
- Microsoft Teams
We can also arrange a conference telephone call. There is no need to visit an office as all work can be handled remotely. Meetings can be arranged at a time and in a way that is convenient for you.
If you have any thoughts or comments on this article, “Take financial advice and be £47,000 better off in retirement.”, then we would love to hear from you.
Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).