According to Aegon's figures, this indicates a 25% increase in the number of people seeking financial advice since the last Aegon survey which found that only 8% of people spoke to a financial adviser about their financial decisions.
Similar to the findings of the previous survey, the majority (47%) said they make financial decisions on their own, while 40% said they made decisions with their partner or spouse.
Steven Cameron, Pension Director said: “The increase in the number of people speaking to a financial adviser is encouraging, with 25% more seeking advice than in 2016. However, overall, take-up of financial advice remains worryingly low with around 1 in 10 people seeking advice.
Since last year, the numbers accessing their pensions flexibly through pension freedoms has continued to grow. Making the right decision on your retirement finances is hugely important and really should be done only with the help of a professional adviser. Worryingly, 32%*** of those going into income drawdown did not use an adviser.
Both the regulator and the Government are keen to make advice and guidance more accessible to more people, and their Financial Advice Market review led to a range of initiatives. However, while advisers support the aims of these measures, Aegon research shows they are sceptical these are making a difference in practice.
If people are unsure if they need advice, they might first make use of free sources of guidance available, for example from Pension Wise on pension freedoms. Providers and some employers can also provide basic information. But for the more important or difficult decisions people should seriously consider paying for financial advice. In many cases, the benefits of getting things right can far outweigh the costs. It might be money well spent to ensure they are doing the best they can for their financial futures.”
9 reasons to speak to a financial adviser when planning for retirement
• Selecting a pension product
• Planning your retirement goals and where to invest your money to meet them
• Checking if you’re paying enough in to meet your retirement goals
• Deciding how to access your pension, including how much income you can take without risking running out of money
• Consolidating your pension saving into one pot
• Transferring a pension from one provider to another
• Considering whether to transfer out of a final salary or defined benefit scheme
• Reviewing investment performance or changing funds
• Inheritance tax planning
