Over 2 in 3 (71%) monetary advisers report that worry of outliving their pension financial savings was the first concern expressed by retirement purchasers, in response to a brand new report.
An analogous share of 200 monetary advisers (64%) surveyed by consultancy NextWealth reported that purchasers additionally feared inflation and the rising value of residing.
Half (49%) of these surveyed cited protecting long-term care prices as a significant shopper concern.
Shopper considerations could possibly be nicely based. Current adjustments to the PLSA Retirement Dwelling Requirements earnings necessities reported a considerable enhance within the quantity wanted for a reasonable retirement over the previous 12 months.
Whereas considerations round long-term monetary safety abounded, advisers mentioned purchasers’ wishes for retirement remained largely unchanged.
Three-quarters (76%) of advisers mentioned purchasers hoped to take care of the identical lifestyle in retirement as earlier than retirement.
Half (45%) of advisers mentioned purchasers had expressed wishes to journey or dwell abroad.
Purchasers have been additionally nonetheless seeking to help different members of their household. Two thirds (65%) of advisers surveyed mentioned purchasers had expressed a need to help kids 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 purchasers.
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 primarily based on an understanding of purchasers’ 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 Right this moment Evaluation: Retirement is a time of planning and main life change. For a lot of suggested purchasers the worry of operating out of cash in retirement is an actual one. It is a query solely nicely certified Monetary Planners and advisers can reply and it creates a singular alternative for nicely educated professionals to place purchasers’ minds comfy that. With good planning recommendation and enough funds saved purchasers mustn’t run out of cash. Analysis akin to this, and different latest stories, are useful in understanding the drivers that immediate purchasers to hunt skilled Monetary Planning recommendation within the first place. Peace of thoughts stays an overriding need of most pension savers and that’s unlikely to alter. It means that ‘getting below the pores and skin’ of purchasers and understanding their retirement motivations just isn’t an ‘ethereal fairy’ concept however a crucial a part of good Monetary Planning.
