Over 2 in 3 (71%) monetary advisers report that worry of outliving their pension financial savings was the first concern expressed by retirement purchasers, in keeping with a brand new report.
The same share of 200 monetary advisers (64%) surveyed by consultancy NextWealth reported that purchasers additionally feared inflation and the rising value of dwelling.
Half (49%) of these surveyed cited overlaying long-term care prices as a significant consumer concern.
Consumer considerations may very well be nicely based. Current modifications to the PLSA Retirement Residing Requirements revenue necessities reported a considerable enhance within the quantity wanted for a reasonable retirement over the previous 12 months.
Whereas considerations round long-term monetary safety abounded, advisers stated purchasers’ needs for retirement remained largely unchanged.
Three-quarters (76%) of advisers stated purchasers hoped to take care of the identical lifestyle in retirement as earlier than retirement.
Half (45%) of advisers stated purchasers had expressed needs to journey or reside abroad.
Purchasers had been additionally nonetheless trying to help different members of their household. Two thirds (65%) of advisers surveyed stated purchasers had expressed a want to help youngsters and/or grandchildren with monetary commitments.
Steven Cameron, pensions director at Aegon, stated the analysis confirmed that the prospect of dwelling longer was bringing many challenges to retirement planning for purchasers.
He stated: “These findings reinforce the analysis we’ve carried out on how dwelling longer has impacted the retirement panorama. These approaching or of their ‘Second 50’ are bearing extra of their very own monetary dangers.
“Which means personalised Monetary Planning based mostly on an understanding of purchasers’ hopes and fears is essential for tailoring methods that meet particular person wants and supply peace of thoughts.”
• NextWealth’s Managing Lifetime Wealth report, sponsored by Aegon, surveyed 200 monetary advisers in November.
Monetary Planning At this time Evaluation: Retirement is a time of planning and main life change. For a lot of suggested purchasers the worry of working out of cash in retirement is an actual one. It is a query solely nicely certified Monetary Planners and advisers can reply and it creates a novel alternative for nicely educated professionals to place purchasers’ minds comfy that. With good planning recommendation and adequate funds saved purchasers mustn’t run out of cash. Analysis resembling this, and different current experiences, are useful in understanding the drivers that immediate purchasers to hunt skilled Monetary Planning recommendation within the first place. Peace of thoughts stays an overriding want of most pension savers and that’s unlikely to vary. It means that ‘getting underneath the pores and skin’ of purchasers and understanding their retirement motivations will not be an ‘ethereal fairy’ concept however a crucial a part of good Monetary Planning.
