Pensions - Articles - Aegon comment on the Financial Advice Market Review

 “People don’t always recognise when they need guidance or when they would benefit from advice tailored to their own unique circumstances and the review will need to consider the role of financial education in helping people to distinguish the two. 

 “There are a number of ingrained challenges that the review will have to address. Our own research supports the view that while the majority of people are comfortable making decisions regarding simple financial products like savings accounts, few feel able to act when it comes to pensions and investments. Just 27% of people are confident making an investment in the stock market and just 23% feel confident reviewing their pension for example.

 “While confidence levels are low, so is people’s willingness to pay for financial advice. Ninety per cent of those who have taken advice report that they were pleased or satisfied with the service, but overcoming the cost barrier and extending advice to a wider group will require careful consideration of issues such as the potential use of digital and industry business models.

 “The review is extremely timely given the implementation of the pension freedoms. Those approaching retirement face a multitude of different options that previously weren’t available to them and it’s understandable that people feel daunted by these choices. Anything that can be done to both explain the value of advice and make it accessible to a wider group should be welcomed.”