Consumers delay seeking pension advice despite retirement aspirations

People are waiting until after they reach middle age before seeking pension advice, despite the majority aspiring to retire aged 65, according to the Iress Financial Readiness Index (FRI).

The index showed that while the average expected retirement age was 65, nearly two thirds (64 per cent) of those who planned to seek retirement planning advice said they intended to wait until after the age of 46.

Iress said the findings indicated that many people were delaying conversations about retirement until later in life, which was reducing the potential benefits of long-term financial planning.

Despite the retirement aspirations, just 37 per cent of respondents were confident they will be able to retire at their preferred age.

When asked about financial advice, only 11 per cent of consumers said they had taken guidance from a financial adviser.

Of those planning to seek advice, a third (33 per cent) said they ‘may seek it in the future’.

Iress stated that the FRI highlighted a significant opportunity for advisers to engage people earlier in their retirement journey, which could improve understanding, investment returns, confidence, and give consumers more time to make decisions about their long-term finances.

“Retirement is one of the biggest financial goals most people will ever have, yet our research suggests many are approaching it without the confidence or knowledge they need,” commented Iress CEO, Iress UK, Alistair Morgan.

“There is a clear gap between when people hope to retire and how confident they are that they’ll actually achieve it.

“What’s particularly striking is how long many people plan to wait before seeking professional advice.

“The earlier people begin planning, the more options they’re likely to have, and the greater the impact those decisions can have over time.

“For advisers, that represents a significant opportunity to engage clients earlier and help them build stronger, long-term retirement outcomes.”

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