Millions of pensioners left puzzled by retirement

07 July 2008 / by Rebecca Sargent
As many as seven million over 50s are anxious and unsure about their retirement plans according to new research from Liverpool Victoria (LV=).

One of the main complexities worrying those who are aged 50 or older is the increasingly fast pace of legislation surrounding retirement, pensions and tax, claiming the rules are changing so fast that information can change from month to month.

However, despite the large number of worriers, the majority of those facing retirement have so far taken no professional retirement advice at all. Rodney Cook, LV= life & pensions managing director, said:

"Our research shows that there is a massive opportunity for financial advisors in the UK. Around 3.5million pre-retired households are yet to take any professional financial advice, which is worrying as so many people facing retirement admit they don't understand financial planning rules and legislation.

"And this is set to be a real growth area for the financial advice industry, as people live longer than ever before, so will need effective retirement solutions to maximise their income," he added.

The research also found that of those over 50s who have already consulted a professional about financial advice, independent financial advisors (IFAs) are the preferred source of information.

Mr Cook said: "This research highlights how important the role of the independent financial advisor is in helping over 50s in the UK to make the most out of their money, as too few people are taking advice on how to manage financially in retirement.

"With an 'anxious majority' of seven million pre-retirement people admitting they are confused by the legislation surrounding pensions and retirement planning, it is clearly vital that people take advantage of professional advice to maximise their retirement wealth, to help ensure their comfort in old age."

© Fair Investment Company Ltd