There is growing evidence that people are turning to social media platforms for financial advice.
If you are retirement planning in Cheshire or Oswestry, dedicated Facebook groups have sprung up to help people reach pension decisions, even though the solicited information isn’t necessarily always accurate.
These are the recent findings of pension provider People’s Pension and consultancy Ignition House, who have been tracking the behaviour patterns of retirement savers in the UK. The cited reason for this trend is the increasing and sometimes overwhelming complexity of choices facing people approaching retirement.
Researchers identified a desire for peer-to-peer advice amongst seniors who now form an important demographic on Facebook. Amongst this group, there is often fear and uncertainty about the future, with social media platforms offering simple answers not found elsewhere.
Although virtual groups can offer entertainment and comfort, they are no substitute for professional financial advice. People still need to be guided through important decisions in later life such as when to retire, what lifestyle to pursue or whether to get an annuity. Retirees will need solid advice on whether to take a tax-free lump sum or withdraw from a drawdown pot.
Pension providers have responded with planning tools and guidance services to help simplify decision-making. A representative of People’s Pension said the findings posed challenges for the industry in terms of not only offering greater clarity, but also the emotional support some people may find missing when making significant, life-changing financial decisions.
