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Over 2 in 3 (71%) monetary advisers report that worry of outliving their pension financial savings was the first concern expressed by retirement shoppers, in line with a brand new report.
An analogous proportion of 200 monetary advisers (64%) surveyed by consultancy NextWealth reported that shoppers additionally feared inflation and the rising price of residing.
Half (49%) of these surveyed cited protecting long-term care prices as a significant consumer concern.
Consumer considerations may very well be properly based. Current adjustments to the PLSA Retirement Residing Requirements revenue necessities reported a considerable enhance within the quantity wanted for a average retirement over the previous yr.
Whereas considerations round long-term monetary safety abounded, advisers mentioned shoppers’ needs for retirement remained largely unchanged.
Three-quarters (76%) of advisers mentioned shoppers hoped to take care of the identical lifestyle in retirement as earlier than retirement.
Half (45%) of advisers mentioned shoppers had expressed needs to journey or reside abroad.
Shoppers had been additionally nonetheless trying to help different members of their household. Two thirds (65%) of advisers surveyed mentioned shoppers had expressed a want to help youngsters and/or grandchildren with monetary commitments.
Steven Cameron, pensions director at Aegon, mentioned the analysis confirmed that the prospect of residing longer was bringing many challenges to retirement planning for shoppers.
He mentioned: “These findings reinforce the analysis we’ve performed on how residing longer has impacted the retirement panorama. These approaching or of their ‘Second 50’ are bearing extra of their very own monetary dangers.
“Because of this personalised Monetary Planning based mostly on an understanding of shoppers’ hopes and fears is essential for tailoring methods that meet particular person wants and supply peace of thoughts.”
• NextWealth’s Managing Lifetime Wealth report, sponsored by Aegon, surveyed 200 monetary advisers in November.
Monetary Planning At this time Evaluation: Retirement is a time of planning and main life change. For a lot of suggested shoppers the worry of working out of cash in retirement is an actual one. It is a query solely properly certified Monetary Planners and advisers can reply and it creates a singular alternative for properly skilled professionals to place shoppers’ minds comfy that. With good planning recommendation and adequate funds saved shoppers mustn’t run out of cash. Analysis corresponding to this, and different current studies, are useful in understanding the drivers that immediate shoppers to hunt skilled Monetary Planning recommendation within the first place. Peace of thoughts stays an overriding want of most pension savers and that’s unlikely to vary. It means that ‘getting underneath the pores and skin’ of shoppers and understanding their retirement motivations shouldn’t be an ‘ethereal fairy’ thought however a vital a part of good Monetary Planning.
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