Two-thirds back compulsory retirement advice

The provider is calling for a clear hand-off to regulated financial advice when people are seeking help to take the next steps at-retirement.

More than one third (35%) of people polled said they were not comfortable managing their pension in retirement, with only 11% of people saying they were very comfortable managing their pension.

The research also shows that 62% of people who plan to use their pension funds before retiring also think that financial advice should be compulsory. This follows the introduction of the new pension freedoms, which allow people with defined contribution pensions’ unfettered access to their savings.

Andrew Tully, pensions technical director at MGM Advantage, said:

"The research paints a clear picture of an appetite among the over 55s for financial advice not only at the point of retiring but also during retirement. People are making difficult, life-changing decisions, made all the more complex by the new pension rules. We’re seeing the majority of people recognise that without financial advice they may fail to realise the full implications and make decisions that end up costing them dearly.

"The Pension Wise guidance service is a good starting point for people. The service can help people understand the options available, but it may not  be enough to help them make the choice that’s right for their personal circumstances. We need to provide a clear hand-off to regulated financial advice to help people take the next logical steps. My fear is many people will revert to their pension company and not shop around for either the best solution or the best deal.

"We need to continue to work hard to promote the benefits of people actually taking the next step and getting proper regulated financial advice. This is the only way we can remove the status quo, ensure we improve the outcomes for people at-retirement and make sure the new rules benefit as many of them as possible."