pension financial advice

Thousands to reach retirement with no guidance



Posted on: 16th July 2020

Of the 650,000 pension pots accessed for the first time in 2018-19, 400,000 were done so without regular pension financial advice, with 75 per cent of which being taken without even a guidance performance.

This statistic is worrying, especially considering the number of pension services available both online and locally.

Currently, The Money and Pensions service are running trials into improving take-up of guidance. The results are expected to be published later this month.

In anticipation of the results, Stephen Lowe, Just Group’s Communications Director, expressed his thoughts on what should be done in light of the findings.

He said: “In the coming weeks we expect to see the results of trials undertaken by the Money and Pension Service to find ways to improve guidance take-up.

“Once the report is published the next step will be for FCA to publish or consult on proposals but no timeline has been set for this.

“The FCA now has a unique opportunity to ensure receiving free and impartial guidance becomes a new norm by setting an approach to ensure far more gain from the valuable guidance than miss out on it.”

Fidelity International has also highlighted the need for effective guidance on pensions. What’s more, the financial services organisation learned that women are particularly facing a difficult outlook with their pensions and savings.

In their recent “Financial Power of Women” report, they found that 54 per cent of women worried that they wouldn’t be able to live comfortably in retirement.

Additionally, the Pensions Policy Institute found that women in their 60s will, on average, retire with £51,000 of savings, less than a third of the men’s average of £156,000.

Generally speaking, people have six options for accessing their pensions. For those who don’t need to retire or simply do not have enough, they can leave it untouched with the hope of it growing further.

If you would like guidance with your pension savings for an enjoyable retirement, get in touch with Haven IFA today.