Last year’s pension reforms gave retirees unprecedented pension freedoms. However, not enough is being done to advise the newly retired, according to insurer Liverpool Victoria, who believe that financial guidance at retirement age should be compulsory.
It’s essential that all consumers are able to access affordable, regulated advice but when people can’t, or don’t, take advice we believe guidance should be compulsory. This would further inform retirees about their options and help them make the most of their money, so we fully support the introduction of a merged, one-shop money and pensions guidance body.
Richard Rowney, Managing Director of Life and pensions at Liverpool Victoria (LV=), told City A.M.
Pension planning in retirement age
Previous research by LV= has found that roughly half a million people retire every year having taken no financial advice at all. Their research also noted that even those who do take advice, and shop around for a good deal on their annuity, typically receive a 23 per cent drop in income once they reach retirement.
This suggests a buying crisis, where people are making their financial decisions without enough financial advice and planning. Most respondents of the research study said they could not afford to invest in the services of a financial planner. The research also revealed that most people did not shop around for better deals, while they dipped into their pensions pot for various reasons.
Of those interviewed:
- 36% trusted their current provider.
- 29% found it easier to access their savings.
- 15% did not want to be slapped with the high switching charges.
One-shop money and pensions guidance
One solution that has been put forward is a ‘one-shop money and pensions guidance body’ that would provide retirees with options which would help them to get the most out of their savings.
Angela Maher, Managing Director at Acumen, said: “Your pension is perhaps the most important financial investment you will ever make; especially now, given the pension freedom reforms. Yet it seems that people might not be accessing sufficient pensions advice, if this research by LV= is anything to go by.
“We would certainly encourage the idea of compulsory financial guidance, whether that be via a pensions guidance body or indeed through Independent Financial Advisers like Acumen. We pride ourselves in offering excellent pensions advice that not only pays for itself but ultimately allows our clients to enjoy their retirement to the fullest.
“Among our team, we have expert pension planners, who can analyse your financial situation and recommend the most beneficial pension advice and planning, specific to you and your circumstances,’’ Angela added.
To arrange a meeting with an Acumen pensions adviser, please contact us today on 0151 520 4353 or email email@example.com.