Over-55s want retirement advice to be compulsory

Two thirds of over-55s think financial advice should be compulsory for people nearing retirement, research by MGM Advantage suggests.

The survey of 1,000 over-55s found that 65% want compulsory financial advice while 62% of those planning to use their pension funds before retirement thinking the same.

People nearing retirement age now have more financial options than previous generations following the introduction of the 2015 pension reforms. With annuity rates at all-time lows and the new ability to withdraw pensions as cash, many people don't feel comfortable making retirement decisions.

More than a third (35%) of survey respondents said they were not confident in their ability to manage their pension while just 11% said they felt very comfortable in handling their retirement 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."

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