New research from retirement and savings company LV= has revealed that almost seven million people facing retirement in the UK are more confused than ever about the complexity of current tax legislation and rules, complaining that they are changing so fast that information on what is right one month, may change to be wrong the following month.
Seven out of 10 over 50s, surveyed for the LV= State of Retirement report, admitted that they are uncertain about what legislation is correct.
Despite their doubts, the majority of those facing retirement haven’t taken professional financial advice at all about their overall financial situation, level of savings, and income in retirement, which equates to 5.5 million people in around 3.5 million households.
Of those over 50s who have already consulted a professional about financial advice, independent financial advisers (IFAs) are the preferred source of information, with almost half of people facing retirement choosing to consult an IFA. And it seems the closer people get to retirement, the more they realize they may need help with their financial planning, as five out of 10 of those aged 60-64 years have met with an IFA.
Just 4% of those aged over 50 years who have taken some form of financial advice have consulted a solicitor or a broker, and 16% have said they have consulted their bank manager.
The study has also revealed that individual savings accounts (ISA) are the most popular topic for those who have seen a professional about financial advice – 43% of over 50s discussed ISAs, followed by low risk investments, general pension planning, and inheritance tax planning.
Rodney Cook, managing director of life and pensions at LV=, said: 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 maximize their retirement wealth, to help ensure their comfort in old age.