Almost one in two retired people did not review their finances or seek guidance or advice from professionals before retiring.
Research by Just Group said these figures how many people are caught in a “retirement blind spot” which could make them vulnerable to poor outcomes as they get older.
The research from the company’s ‘Countdown to Retirement’ series found a third of retirees (35 per cent) over the age of 55 said they retired without making any assessment of their ability to fund retirement. A further one in seven (14 per cent) said they ‘ran out of time’ to make plans as they were forced to retire earlier than expected.
As a result Just Group says that almost half (49 per cent) of current retirees approach later life without any clear financial plan for the decades ahead.
In total the survey also found that 34 per cent of retired people reviewed their finances ahead of stopping work. But there are still relatively few people seeking professional advice. Less than one in 10 (8 per cent) said they saw a financial adviser, while an even smaller number (6 per cent) used the government’s free Pension Wise services. Just 3 per cnet of respondents said their employer arranged for them to get financial advice.
Just Group communications director Stephen Lowe says: “Many people are at risk of being caught in a retirement blind spot where they’re vulnerable to events unexpectedly knocking them off course.
“Receiving financial advice remains the gold standard for preparing financial plans ahead of retirement and, if possible, we’d encourage people to explore this option.”
He points out that more employers are offering help with this but many people do not check whether this is an option.
He adds: “The advent of the digital world means there are some lower cost online and hybrid solutions available for guidance or advice. At the very least people should make sure they take up their entitlement to use Pension Wise – the government backed, independent and impartial service which provides free pension guidance.”
