PRESS RELEASE

Consulting a financial adviser is key to feeling confident about retirement

  • Only 41% of non-retired UK adults are confident they’ll have saved enough for retirement
  • But taking financial advice boosts confidence - 65% of those who have consulted a financial adviser are confident they’ll have saved enough for retirement 
  • Those confident about retirement are also more likely to have increased pension contributions and discussed plans with partner

Research from pensions and retirement specialist LV= highlights the benefits of taking financial advice for retirement planning.

The LV= Wealth and Wellbeing Monitor*  reveals that much of the general population is confused and disengaged when it comes to retirement - but those who take financial advice are much more likely to be confident and better prepared.

Clive Bolton, Managing Director of Savings and Retirement at LV=, said: “The research highlights the enormous value and benefit financial advisers provide for their clients.”

The LV= Wealth and Wellbeing Monitor - a quarterly survey of 4,000 UK consumers - shows most people are not confident about their retirement plans:

59% of non-retired UK adults said they are not confident they have saved enough for retirement
Two-thirds (66%) of non-retired women are not confident they have saved enough for retirement, compared to only half (50%) of non-retired men.

This lack of retirement confidence is a result of many not knowing how much they have saved in their pension, or how much they might need to retire. 

30% of non-retired UK adults do not know when they are going to retire, while nearly one in four (23%) of those aged 55-64 do not know when they will retire
Only 14% of non-retired UK adults have looked at their pension value in the last year and only 8% have  researched how much they would need saved in their pension for a comfortable retirement 
But although so many people are not confident about their retirement prospects, only 7% have consulted a financial adviser about retirement. 

Those who are confident about retirement are more likely to have consulted a financial adviser, increased pension contributions and discussed plans with their partner

Two-thirds (65%) of non-retired people who have consulted a financial adviser are confident about their retirement plans vs. 41% of all non-retired UK adults. 
More than half (55%) have increased pension contributions and researched how much they need in retirement and 56% have discussed retirement plans with their partner

Mass affluent consumers are more engaged with retirement planning

The research highlights how mass affluent people – those with assets of between £100,000 and £500,000 excluding property - are more engaged with retirement planning. Mass affluent people are a core target market for financial advisers and the research reveals:

A quarter of mass affluent adults (25%) are planning to retire before the state retirement age, compared to 12% of the general population
Those approaching retirement (aged 55-64) are almost twice as likely (18%) as the general population of this age (10%) to have consulted a financial adviser 
Those approaching retirement (aged 55-64) are much more likely (36%) than the general population of this age (23%) to have looked at the value of their pensions 

Clive Bolton, Managing Director of Savings and
Retirement at LV=, added: 

“LV=’s Wealth and Wellbeing Monitor highlights how many people are understandably worried about the future in the current situation. However it’s striking to see how consulting a financial adviser makes them become much more confident about their finances and retirement plans.  

“Saving some money in cash and keeping it aside for emergencies makes sense but too much money means people can miss returns from rising investment markets. A good financial adviser will help clients make the most of their savings by creating an investment portfolio to match their attitude to risk.  

“Advisers have a vital role to play when it comes to long-term saving for retirement. There are so many variables for savers to consider: How much should I save? What assets I should invest in? What age should I retire?  How much money should I draw from my pension?  .  

“Taking financial advice is a good way for people to find a way through the maze of retirement planning. A financial adviser will take stock of their client’s financial situation, make them think hard about the retirement they want and what they need to do to achieve it.

“LV=’s research indicates that those people who are confident about their retirement plans are much more likely to have consulted a financial adviser, discussed their retirement plans with their partner and increased their pension contributions.

“The cost of taking good financial advice represents is money well spent. Research** indicates that people who take financial advice are better off in retirement than those who don’t.”

 

Notes to editors

*LV= surveyed 4,000 nationally representative UK adults via an online omnibus conducted by Opinium in December 2020.
** International Longevity Centre
 
 

For further information please contact:

David Gwyer
Media Relations Manager – Life and Pensions
020 7634 4311
07798 796907
Candice South
Press Officer, Life & Pensions
020 7634 4497
07867 141547

About LV=

LV= is a leading financial mutual and serves over 1.3 million members with a range of financial products. When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products. We offer our services direct to consumers, as well as through IFAs. 

LV= and Liverpool Victoria are registered trademarks of Liverpool Victoria Financial Services Limited and LV= and LV= Liverpool Victoria are trading styles of the Liverpool Victoria group of companies. Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237 is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, register number 110035. Registered address: County Gates, Bournemouth, BH1 2NF.