Brits are missing out in retirement due to leaving it too late to seek professional financial advice on their later life finances, according to national advice firm Continuum.
This week marks Pensions Awareness Week and new research has found that many Brits are missing out on tax breaks and opportunities designed to help Britons save for retirement by leaving it too late to seek financial advice.
Only 5% of 35-44 year olds have sought advice from an independent financial adviser about their financial preparation for retirement, according to the new research from Continuum.
This figure increased to 10% of 45 to 54 year olds, and 21% for those over the age of 55, but by this point those who have not sought advice could have missed out on many tax breaks and other opportunities designed to help Britons save for retirement.
Ben Alcock, Chartered Financial Planner in Continuum, warned that putting off seeking financial advice until the decade before retirement could have serious consequences for Brits lifestyles in later life.
He said: “Retirement may seem like a long way away in your 20s and 30s, with saving for later life rarely making it onto the top of your priority list. But starting saving sooner rather than later can really pay off prove to be a wise decision.”
“A good financial adviser can help you look past your short and mid-term savings goals and look at the wider picture, but our research shows that very few Brits are consulting a financial adviser about their retirement plans until it is just around the corner.
“By waiting to take professional advice until the age of 55 Brits will already have missed many opportunities to boost their savings and may find they have to make lifestyle compromises in retirement as a result.
“Pensions are designed to be a long-term investment and are likely to be the longest investment you make in your lifetime. The earlier you start saving, the more time your investments have to potentially grow.
“Most employers will also top up anything you add into a workplace pension so it makes sense to make the most of the opportunities they offer. The government also offers tax relief on pension contributions which can help cut your total tax bill whilst boosting your retirement savings.”
The region which saw the highest number of UK adults consulting a financial adviser about retirement plans was the South of England (19%), closely followed by Scotland (18%) and the Midlands (17%).
Britons who were least likely to have consulted a financial adviser about later life finances were those living in Wales (7%) and London (9%).
What has been your main source of financial advice for planning your retirement?
| North | Midlands | East | London | South | Wales | Scotland | Northern Ireland | |
| Financial adviser | 13% | 17% | 13% | 9% | 19% | 7% | 18% | 15% |
| Online resources | 15% | 11% | 10% | 15% | 15% | 9% | 12% | 15% |
| Friends and family | 8% | 6% | 10% | 12% | 8% | 9% | 5% | 9% |
| Colleagues/employer | 8% | 8% | 10% | 7% | 9% | 5% | 8% | 10% |
| Books/magazines | 1% | 1% | 0% | 1% | 1% | 2% | 1% | 0% |
| Other | 2% | 4% | 4% | 4% | 2% | 6% | 2% | 0% |
| Not sought advice | 51% | 50% | 50% | 52% | 42% | 62% | 54% | 52% |
Those who are married or in a civil partnership were also more likely to have consulted a financial adviser (18%) than their counterparts who were living together (10%), separated (12%) or Single (10%).
Child free Britons were also more likely to have consulted a financial adviser (17%), than those with one child (10%), two children (7%), or three or more (8%).
The revelation comes a month after research from Continuum showed that half of Britons are not confident they will be able to have financial freedom when they stop work. Please contact our media team for a copy of the press release,
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2067 adults. Fieldwork was undertaken between 28th – 30th June 2024. The survey was carried out online on behalf of Continuum. The figures have been weighted and are representative of all UK adults (aged 18+).
