Majority of over 50s confused about their financial future

  • Story by: Tabatha Bergin
  • Magazine: FTAdviser
  • Published Friday , July 04, 2008

The complexity of tax legislation and constant adaptations to the pension rules have left almost seven million people on the brink of retirement with little idea how to deal with their affairs.

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According to the latest 'State of Retirement' report published by LV=, seven out of 10 (70 per cent) of over 50s admitted they are uncertain about what legislation is correct.

However, despite such high levels of uncertainty surrounding their retirement funding, more than half (56 per cent) of those questioned had taken no professional finance advice. This equates to around 5.5 million people ignorant to their monetary outlook.

Although, of those that had sought guidance, 49 per cent opted to use an independent financial advisers (IFAs) - the most popular source of information.

This figure increases the closer people get to retirement, with five out of 10 of those aged 60 to 64 years (55 per cent) having met with an IFA.

LV= life and pensions managing director Rodney Cook said: "This research highlights how important the role of the independent financial advisor is in helping the over 50s in the UK to make the most of their money, as too few people are taking proper advice on how to manage financially in retirement.

"It is clearly vital that people take advantage of professional advice to maximise their retirement wealth, to help ensure their comfort in old age."



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