Research from 7IM reveals that nearly half (47%) of retirees who have come of pension age post-pension freedoms – dubbed Generation F (for freedoms) – do not believe it’s important to meet with a professional financial adviser once in retirement. This is despite a similar proportion regretting their previous retirement decisions.
7IM commissioned specialist consultancy Cicero/amo to conduct research among 505 full or semi-retired UK adults. Of this sample, 121 were aged 55-64 (Generation F) so 7IM could better understand the priorities of this distinct sub-set of retirees.
While 47% of Generation F retirees don’t believe it is important to meet with professional financial planners in retirement, they are also disproportionately likely to regret their retirement decisions compared with the sample of retirees aged 65+.
7IM has previously highlighted the issues of post-retirement ‘regrets’; where given the chance, 32% of all retirees surveyed would make different financial decisions at retirement. However, a deeper dive into the research indicates that 43% of Generation F retirees would do things differently compared to just 29% of retirees aged 65+.
When asked about what was important to these retirees the top four ‘wants’ were:
- I want a straightforward retirement solution (87%)
- My retirement income needs to be tax efficient (86%)
- I want guaranteed income, with regular payout through retirement (68%)
- I want to be able to take my retirement income flexibly as my circumstances change (64%)
The data reveals a worrying disconnect. Generation F have clearly defined and often quite complex goals for their retirement, yet they do not feel it’s important to meet with financial advisers. This is despite this cohort’s high propensity to regret the financial decisions surrounding their retirement.
Commenting on the findings, Verona Kenny, Managing Director, Intermediary at 7IM said: “It’s alarming to see that so few of Generation F believe it’s important to seek financial advice in or at retirement, particularly as they tend to have goals which clearly would benefit from professional financial advice. To compound matters they are also the group most likely to regret their retirement decisions.
“As an industry we know that proper financial advice underpinned by robust solutions can lead to better retirement outcomes for clients but what our research shows is that we all need to do more and get it together to demonstrate the value we can deliver to this generation.
“Indeed, with the FCA’s plans for a thematic review of retirement income advice, which has been driven by the vital need for good advice by consumers at the point they first access their pension savings and on an ongoing basis, we have the perfect opportunity to really get it together to solve the retirement puzzle for not only Generation F but all retirees.”
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