LV=’s latest Wealth and Wellbeing Monitor has found that many people are confused and disengaged when it comes to retirement.
However, those who take financial advice are much more likely to be confident and better prepared.
59% of non-retired UK adults said they are not confident they have saved enough for retirement, while 66% of non-retired women are not confident they have saved enough for retirement, compared to 50% of non-retired men.
LV= said this lack of retirement confidence is a result of many not knowing how much they currently 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
In addition, while many people are not confident about their retirement prospects, only 7% have consulted a financial adviser about retirement.
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.
55% have increased pension contributions and researched how much they need in retirement and 56% have discussed retirement plans with their partner
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.
The report said that 25% of mass affluent adults 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, and are also 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=, said: “The research highlights the enormous value and benefit financial advisers provide for their clients.
“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.
“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.”