Prudential Reveals Just One In Five Seek Financial Advice In Run Up To Retirement
on: May 25, 2010, 05:10 am
According to Prudential research, people approaching
retirement could be missing out on valuable guidance by choosing to
shun the services of a professional financial adviser. The survey
found that only 19 per cent who said they were planning to retire in
2010 got their pre-retirement advice from a financial adviser.
Prudential's Class of 2010 report has also found that 35 per cent got their
financial advice from friends, 10 per cent from family and 25 per cent newspapers,
magazines and the internet, however fewer than one in 10 people (9 per cent) who had
done their own research from newspapers, magazines or the internet then went on to
seek professional financial advice regarding their retirement planning.
Vince Smith-Hughes, head of retirement income at Prudential, said: "There's no
doubt that the internet and all the various personal finance magazines and
newspapers provide a wealth of useful information for people planning their
retirement. But if people rely solely on this information to make a financial
decision, it could lead to serious misdiagnosis and people could end up making
irreversible decisions which leave them financially disadvantaged.
"The low take-up of financial advice could also be a wake-up call for the industry
and regulators. The fact that relatively few consumers appear to take financial
advice highlights the need to develop advice services which can address the issue of
consumer access, and perhaps the industry could also do more to encourage people
approaching retirement to take advantage of the expertise which are already
available from advisers.
"I suspect that one reason for low take-up of financial advice is that people are
reluctant to pay for it, but I firmly believe there's no substitute for expert
professional financial advice. Like many services which require skill and a
detailed knowledge of the market, financial advice does cost money."
Men are more inclined to consult a financial adviser about an endowment or their pension plan than
women according to Prudential's research (22 per cent compared to 15 per cent),
while more women than men tend to seek their advice from friends or family and
newspapers, magazines or the internet (38 per cent compared to 32 per cent).
The information contained in Prudential UK's press releases is intended solely for
journalists and should not be used by consumers to make financial decisions. Full
consumer product information can be found at www.pru.co.uk.
Notes to editors:
* Survey conducted by Research Plus between 3-10 December 2009 among 1,001 UK adults
aged 45+ using an online methodology.
"Prudential" is a trading name of The Prudential Assurance Company Limited, which
is registered in England and Wales. This name is also used by other companies within
the Prudential Group, which between them provide a range of financial products
including life assurance, pensions, savings and investments and an income tax calculator. Registered Office
at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and
regulated by the Financial Services Authority.
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