New research reveals views on savings pots
Half of retirees ‘unlikely to seek advice’ on accessing pensions
Recent reports suggest many are experiencing high charges and long delays and believe the cost of getting professional advice is unaffordable.
Some in the industry agree that fees can be beyond the reach of many of those with relatively modest pensions savings and low income.
The findings by wealth manager Brewin Dolphin have emerged following the changes to pensions which came into effect in April and allowed retirees and pensioners a greater range options over accessing their money.
Ammo Kambo, divisional director and chartered financial planner at Brewin Dolphin, said: “It’s important that these reforms are implemented with care, but investors now have the right to access their money at their discretion.
“Savers need to see consistency in the implementation and be able to access the money they have saved hard for over their working lives. Unreasonable fees, lengthy delays and challenges in obtaining or affording advice need to be addressed quickly.
“While there have been challenges around advice our research shows that with proper care and after individual advice, all retirees could have a better retirement and are less likely to risk running out of cash.
“The benefits of advice need to be made clearer and while Pension Wise [the government service] can help with this, regulated advisers need to agree on how they are going to best serve the needs of pensions savers without undue cost or impediment.”
Brewin Dolphin’s research showed important key findings around pensions freedom:
Of those who knew the size of their pension pot the average size is over £163,000
48% expect their pension pot to last them more than 10 years
16% would still use their pension pots need to pay off debts
Only 6% will invest their pension in gold, shares or bonds
46% will rely on money in an ISA or other savings for their monthly retirement
24% will rely on selling their home/down sizing
23% said they would put their pension in a savings/bank account
57% said they would be unlikely to seek financial advice on whether to withdraw a lump sum from their pension