Financial advisers are regarded as having a key role to play in stopping people making costly errors when it comes to decisions about their pensions, according to a new survey by Intelliflo.
When asked what elements of advice they valued most from a qualified financial adviser in respect of their pension savings, ‘stopping me from making costly errors’ ranked third (36%) in the top three. The top two were: ‘explaining what my options are with what I have saved’ (43%) and ‘helping me to have more money during my retirement than I would expect to have if I didn’t get their advice’ (42%).
The survey, which polled 1,000 UK adults earning over £40,000, also found that:
- The majority (39%) would need to have saved £100,000 or more in their pension before they would visit a financial adviser for advice about how to manage it
- Around one in seven would seek advice if they had less than £10,000
- Just over one in 10 (11%) said they would need between £10,000 and £25,000
- Just over one in 10 (11%) would need between £25,000 and £50,000
- Just under a quarter (24%) said they would need between £50,000 and £100,000 saved
Nick Eatock, Intelliflo’s Executive Chairman comments: “Our poll highlights that financial advisers have a key role to play in protecting their clients from themselves when it comes to making decisions about how they manage their pensions. The publicity around the recent pension changes has highlighted that the new freedoms have the potential to be a poisoned chalice. This presents a good opportunity for advisers to reach out to pension savers to explain how they can help them make wise decisions.”
- When asked about paying for advice, the survey found that:
- A fixed pre-agreed hourly rate is the most popular with those polled (35%)
- Just one in eight (12%) said they would prefer paying via a percentage of the total investment value
- One in 10 (10%) would like a combination of both options
- Worryingly, the majority (43%) said they intend to manage their pension options without seeking any professional advice
Asked what they think is a reasonable hourly rate for a fully qualified, independent financial adviser to charge, the results show:
- A third (33%) said less than £50 per hour
- Almost a third (30%) said between £50 and £100 per hour
- Almost one in five (18%) said between £100 and £150 per hour was reasonable
- Almost one in 10 (9%) said between £150-£200 per hour
- One in 25 said between £200 and £300 per hour
- One in 17 (6%) said £300 or more would be reasonable, although among the 55+ age group one in eight thought more than £300 per hour was reasonable
Notes to Editors
The survey was carried out by Gorkana Surveys among 1,000 UK adults (18 years+) earning £40,000 or more. It was conducted during w/c 18 May 2015.
Intelliflo (www.Intelliflo.com) has been providing information technology services to financial services companies since its formation in 2004. Its leading web-based business management software, Intelligent Office, helps financial businesses large and small to improve efficiency and increase profits. Intelligent Office supports over 1,400 firms and 12,500 users with assets under advice of £194 billion (as at 31 March 2015).
In July 2013 HgCapital, a leading European private equity investor in B2B technology companies, became a majority shareholder in Intelliflo Ltd. HgCapital has a wealth of expertise in developing web-based software businesses and is committed to supporting the next phase of Intelliflo’s growth.
In March 2015 Intelliflo was listed among the top 25 best performing privately owned technology companies in the UK mid-market. The list is compiled by Megabuyte’s independent and highly-regarded research team and is based on financial performance and long-term potential.