Record numbers rely on employers for retirement advice

The research by Baring Asset Management found that 14% of respondents think it is the responsibility of their employer to ensure that they fully understand the asset allocation of their pension fund – up from 13% in 2014 and ranked third overall after ‘their own responsibility’ (56%) followed by their ‘pension provider’ (22%).

Overall, financial advisers remain the most significant source of advice for retirement planning, as cited by 27% of respondents – this was up from 26% in the last survey and 21% in 2013. A fifth (20%) said they were most likely to go to a bank or building society, up from 14% in 2014. One in five (20%) said they do all their financial planning themselves.

However, there was a big rise in number of people primarily using friends and families for advice (23%) – up from 12% in 2013 to 16% in 2014. This was particularly acute for younger people aged 18-24, with 40% saying they relied on friends and families compared to 9% of 55-64 year olds. This younger segment was also twice as likely to look to an employer compared to the pre-retirement segment (17% versus 8% respectively).

Rod Aldridge, Head of EMEA Wholesale Distribution at Baring Asset Management, said:

“Once again our survey shows more people relying on their employer for financial advice – an indication of the central role our work plays in our lives and its role as an increasingly significant distribution challenge. It is also very encouraging that IFAs continue to be key as the importance of independent advice remains fundamental to effective financial provision in retirement.”