The poor understanding of financial advice is particularly worrying at a time when people are faced with more complex decisions about retirement than ever before. Taking professional financial advice is vital to ensure you are equipped to make the most of your hard-earned savings and receive the income you need in retirement. Here, we explain why financial advice is more important than ever before.
KEEPING A REGULAR CHECK ON FINANCIAL PLANS
Lifestyles change as time passes, and it’s important to keep a regular check on our financial plans. It is likely that the balance of investments in your portfolio will need to evolve, not only in line with changing market conditions but also with factors such as your investment goals, your personal circumstances and perhaps most notably your age. Obtaining professional financial advice will ensure that your plans remain on track, especially when the time comes to retire.
LOSING OUT ON THOUSANDS OF POUNDS
A worrying number of people aged over 55 are not planning to take financial advice when they retire. This means people risk losing out on thousands of pounds over the course of their retirement, leaving the UK on the cusp of a ‘mis-buying’ crisis, according to research from LV=.
FLEXIBILITY OVER RETIREMENT OPTIONS
The pension freedoms have given welcome flexibility over retirement options, but this has also created greater complexity; without financial advice, people are at risk of making the wrong decision. The Financial Advice Market Review recommendations help make advice more suitable for the mass market, but much more needs to be done to promote the value of advice, as those who do use an adviser often get more from their money.