Get set for earlier retirement – take financial advice!

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• Consumers who use a financial adviser expect to retire aged 66 on average, while those who haven’t sought advice expect to retire three years later aged 69 years
• Advised consumers also believe they’ll be able to fund their retirement lifestyle for six more years than those who are not advised - 23 years versus 17 years
• Standard Life reveals the positive impact financial advice on retirement preparations and experiences in later life

UK consumers using financial advice say they will be able to retire three years earlier on average than those who haven’t received advice, according to new research¹ by Standard Life, part of Phoenix Group. Advised consumers believe they will retire aged 66, compared to non-advised consumers who expect to retire aged 69.

Standard Life’s Retirement Voice study highlights the impact that financial advice can have on retirement preparations, with those who receive advice feeling better equipped for later life. More than twice as many people who receive financial advice go on to write a plan detailing spending in retirement compared to those who haven’t taken advice - 45% in comparison to 18%. Furthermore, those who receive financial advice expect they will be able to fund their lifestyle in retirement for 23 years, before having to make any cutbacks. However, this drops to 17 years among those who do not receive advice.

When preparation pays off

Standard Life’s research also reveals the benefits of financial planning for those already in retirement. Almost all (96%) of retirees who did either a great deal of financial planning or just a little financial planning (82%) say they are enjoying their retirement. However, this drops to 72% among those who have done no financial planning.

Retiree regrets

Regrets among non-advised retirees are more pronounced with 23% of without an adviser stating they need more money in retirement than they originally anticipated, compared to 19% of advised customers. 23% of non-advised also customers said they now wished that they had planned for retirement more thoroughly, compared to 14% of advised customers. The value of advice holds true regardless of household income – 23% of wealthier pensioners, with an income of between £40,000 and £49,999, said they wished they had planned more thoroughly.

Chris Hudson, Retail Advised Managing Director at Standard Life, commented: “Planning your finances for retirement is daunting, and can throw up a lot of considerations, so it’s no surprise that people who receive financial advice feel better prepared for the future. There’s a clear difference between the retirement plans and experiences of those who have access to advice and those that don’t, highlighting the current advice and guidance gap in the UK.

“Our research shows the value of financial advice. It not only positively influences the age at which someone retires, but also whether they enjoy their retirement too. However, financial advice remains inaccessible to many, who either can’t afford it or don’t know where to get the support they need, while the existing system doesn’t allow providers to give personalised guidance that considers individual wants and needs. With the financial regulator (FCA) recognising the issues and holding a consultation into broadening access to financial advice, we’d like to see an environment where consistent, high quality and accessible guidance and advice is made available for all.”

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Notes to editors:

¹ Boxclever conducted research among 6,000 UK adults. Fieldwork was conducted 6th Sept – 16th October 2022. Data was weighted post-fieldwork to ensure the data remained nationally representative on key demographics.

Comparisons to data from last year are taken from Boxclever research among 4,896 UK adults conducted between 16th and 23rd July 2021.

About Standard Life

• Standard Life is a brand that has been trusted to look after peoples' life savings for nearly 200 years
• Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers' pension scheme.
• Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We're proud to be building on nearly 200 years of Standard Life heritage together
• Our products include a variety of Pensions, Bonds and Retirement options to suit people's needs, helping our customers to invest and save for their future. We're proud to offer a leading range of sustainable and responsible investment options.
• We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about
• The value of investments can go down as well as up and may be worth less than originally invested.