Consumers delay pension advice despite retirement goals
Despite most people hoping to retire at age 65, a significant number of consumers are waiting until after middle age to seek professional pension advice, according to the Iress Financial Readiness Index (FRI). The report shows a disconnect between retirement aspirations and actual financial preparation. While the average expected retirement age stands at 65, nearly two-thirds of respondents who plan to seek guidance intend to wait until after the age of 46. This delay reduces the potential benefits of long-term financial planning.
Confidence gaps and advice uptake
Despite these aspirations, confidence levels are low. Just 37 per cent of respondents feel confident they will be able to retire at their preferred age. When asked about financial advice, only 11 per cent of consumers reported having taken guidance from a financial adviser. Of those planning to seek help, a third said they would only consider it in the future. Iress stated that the findings highlight a significant opportunity for advisers to engage people earlier in their retirement journey, which could improve understanding, investment returns, and confidence.
“Retirement is one of the biggest financial goals most people will ever have, yet our research suggests many are approaching it without the confidence or knowledge they need,” commented Iress UK CEO Alistair Morgan. “There is a clear gap between when people hope to retire and how confident they are that they’ll actually achieve it.”
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The timing of these conversations matters. The longer people wait to seek professional guidance, the fewer options they have available to them. This lag creates a disadvantage that compounds over time, making it harder to recover lost ground. While some might feel that retirement is still decades away, the reality of compounding interest and the unpredictability of the market means that starting early is essential. Waiting until after 46 cuts into the critical window where small adjustments can have a major impact on the final outcome.
Iress noted that advisers have a chance to step in and address this hesitation. By reaching out to clients earlier, professionals can help build stronger, long-term retirement outcomes. This proactive approach shifts the focus from panic management to strategic growth, ensuring that clients have the time and flexibility they need to make informed decisions about their long-term finances.
The Iress UK CEO emphasised that the specific delay period is particularly striking, noting that many individuals plan to wait a considerable amount of time before consulting professionals. He argued that the earlier individuals begin planning, the more options they are likely to have, and the greater the impact those decisions can have over time. This expanded timeframe allows for a more robust strategy to be developed, mitigating the risks associated with market fluctuations and ensuring a more secure financial future.
