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Prudential Reveals Two In Five Planning To Retire In 2011

Prudential has announced that two in five people are planning their retirement for 2011, even though many have received no advice or have relied solely on non-professional advice.

Two in every five people planning to retire in 2011 will do so having relied on non-professional advice as their main financial information source in the run up to retirement. Prudential’s Class of 2011 research studied the financial plans of this year’s retirees and found that 43 per cent have received no professional advice or relied on the internet or the media for most of their pension advice.

However, more than a quarter (28 per cent) of people intending to retire this year received most of their financial information from an IFA – a figure that remains unchanged since last year. But the study shows there is an increasing trend for people to conduct their own research before seeking pre-retirement financial advice. Half of those who said that an IFA was their main source of retirement income advice had also carried out research online and via the media – an increase from one in three in 2010.

Prudential also found that nearly one in ten (9 per cent) are relying on employers for pre-retirement financial advice advice while another 16 per cent are putting their faith in a mix of friends and family, pension providers and banks.

Russell Warwick, distribution strategy director at Prudential, said: “These results show that there is a genuine advice gap for people in the run-up to retirement. The majority of people due to retire this year will miss out on professional advice and could potentially be making mistakes when planning for their retirement income.

“It is imperative for people looking to secure their retirement income to start saving as much as they can as early as they can and in the years immediately prior to retirement I would also recommend a consultation with a professional adviser on an annual basis.

“Our research has also found that the numbers seeking financial advice prior to retirement in 2011 have not changed since last year. This highlights the work that we as an industry will need to undertake to increase consumer understanding of the value that advisers can add in the run up to the implementation of the Retail Distribution Review next year.”

Via EPR Network
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Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Prudential Reveals 1 In 3 UK Couples Know Nothing About Their Partner’s Finances

Prudential has revealed new research that shows UK couples could be risking poverty in old age because they are failing to talk to one another about financial planning for their retirement.

The study found that nearly a third of couples (32 per cent) aged 40 and above but not yet retired* say they don’t know or understand the details of their partner’s retirement savings, with more than a fifth (22 per cent) saying they have never talked to their partner about financial planning for retirement.

The findings from new research commissioned by Prudential reveal that women are even less likely than men to discuss financial planning for retirement with partners, with almost a quarter of women (24 per cent) saying they have never discussed this, compared to almost one in five men (19 per cent).

And a further 12 per cent of women and 11 per cent of men say they know nothing about their spouse or partner’s finances – and they’re not really interested. This lack of interest could be compounding low levels of financial awareness.

To help people prepare for their retirement, Prudential has produced a decade-by-decade guide to the conversations couples need to have at pru.co.uk/couplesconversations. Suggested subjects include making a will, discussing pensions and how much to save, talking about when to retire, working out retirement income, reviewing total savings, researching annuity options and when to buy, checking National Insurance contributions, talking about housing options, leaving an inheritance, and agreeing on long term care.

Andy Brown, investments director at Prudential, said: “It is incredible that so many people do not know the details of their partner’s retirement savings. Essentially, this could mean millions of UK adults are banking on hope as their core retirement strategy and are approaching what is arguably the most important financial decision without a full understanding of their household financial situation.

Via EPR Network
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