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Retirees fear running out of money but don’t seek advice

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Almost half of UK retirees are worried about running out of money in their golden years, but the majority haven’t sought advice, research reveals.

Four in five (78%) UK retirees haven’t sought financial advice, despite 48% admitting they’re worried about running out of money in later life.

Of those who haven’t sought advice, 31% said it was due to cost, while 19% said it’s because they thought it was only of benefit to the wealthy.

The research by abrdn which polled 2,000 UK retirees, also found that for 9%, their ‘lack of experience’ is holding them back from seeking advice.

A gender advice gap is also present, with women less likely to seek advice on their retirement plans than men.

Less than a fifth (19%) of women in retirement have spoken to a professional financial adviser, versus a quarter (25%) of men. Female retirees are also less likely to contact their pension adviser with questions (9% of women versus 15% of men).

However, women are more likely to turn to their partner, friends or family for advice compared to men (8% of women versus 6% of men) but are less likely to search for answers online (6% of women versus 10% of men).

Abrdn found there were regional variations too. Retirees living in the East Midlands are most likely to have sought advice on their retirement plans (28%), followed by those in the North West (24%) and South East (23%).

At the other end of the scale, retirees in Wales (16%) and in the North East (17%) were the least likely to have spoken to a professional before retiring.

Shona Lowe, financial planning expert at abrdn, said: “There’s a common misconception that financial advisers are reserved only for the wealthy – but this is simply not the case.

“Whether it be tax implications, managing ever-changing expenses, supporting loved ones or the very current concerns about the rising cost of living, speaking to an expert can set you up for a better retirement both financially and emotionally.

“A key part of that emotional wellbeing comes from having taken control of both your own financial future and that of your loved ones, and having the right support as you decide what’s right for you.

“That’s why we would urge anyone approaching retirement to seriously consider seeking advice. A financial adviser can make your money work as hard as possible and allow you to focus on enjoying your retirement years.”

Shona Lowe, added: “Although there is a wealth of material available online, and speaking to those around you is often helpful, we want to encourage more people to consider the benefits that personalised financial and retirement advice could bring to them.”

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