A concerning number of people could be caught in the “retirement blind spot”, with many entering later life without conducting any review of their financial affairs or seeking advice from either professionals or friends and family.
The research from retirement specialist Just Group’s ‘Countdown to Retirement’ series, reveals that over a third (35%) of retirees over 55 said they simply retired without making any financial assessment of their ability to afford retirement. A further 14% stated that they ran out of time to make any plans as they were forced to retire earlier than expected. It means that half (49%) of current retirees approached later-life without any clear financial plan for a retirement that would likely last for decades.
Even amongst those who did seek help to work out if they could afford to retire, there were some worrying trends. Fewer than one in 10 (8%) consulted independently with an independent financial adviser (IFA) with a further 3% saying they met with an IFA through their employer. A mere 6% said that they had used the government’s free, independent and impartial guidance service, Pension Wise.
Some people took a DIY approach and made their own calculations with over a third (34%) saying that they had conducted a full review of their savings looking at their likely incomings and outgoings. A further 10% said that they had spoken with their friends and family for informal help and 6% had used other sources of support.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “Many people are at risk of being caught in a retirement blind spot where they’re vulnerable to events unexpectedly knocking them off course. Things rarely go exactly as expected but having a plan will make it easier to understand your options and handle life’s surprises.”
Please see the attached press release for full details and please get in touch if you have any questions.