Prudential Reveals two in Five Planning to Retire in 2011By Prudential, PRNE
Tuesday, April 26, 2011
LONDON, April 27, 2011 - Prudential has announced that two in five people are planning their
retirement for 2011, even though many have received no advice or have relied
solely on non-professional advice.
Two in every five people planning to retire in 2011 will do so having
relied on non-professional advice as their main financial information source
in the run up to retirement. Prudential's Class of 2011 research studied the
financial plans of this year's retirees and found that 43 per cent have
received no professional advice or relied on the internet or the media for
most of their pension advice (
However, more than a quarter (28 per cent) of people intending to retire
this year received most of their financial information from an IFA - a figure
that remains unchanged since last year. But the study shows there is an
increasing trend for people to conduct their own research before seeking
pre-retirement financial advice. Half of those who said that an IFA was their
main source of retirement income advice had also carried out research online
and via the media - an increase from one in three in 2010.
Prudential also found that nearly one in ten (9 per cent) are relying on
employers for pre-retirement financial advice (
www.pru.co.uk/pensions_annuities/pensionsurgery/) while another 16 per
cent are putting their faith in a mix of friends and family, pension
providers and banks.
Russell Warwick, distribution strategy director at Prudential, said:
"These results show that there is a genuine advice gap for people in the
run-up to retirement. The majority of people due to retire this year will
miss out on professional advice and could potentially be making mistakes when
planning for their retirement income.
"It is imperative for people looking to secure their retirement income to
start saving as much as they can as early as they can and in the years
immediately prior to retirement I would also recommend a consultation with a
professional adviser on an annual basis.
"Our research has also found that the numbers seeking financial advice
prior to retirement in
2011 have not changed since last year. This highlights the work that we
as an industry will need to undertake to increase consumer understanding of
the value that advisers can add in the run up to the implementation of the
Retail Distribution Review next year."
According to Prudential's research, men are more likely to seek financial
advice than women in the run up to retirement. Around 34 per cent of men
intending to retire this year cited IFAs as their main source of advice,
compared with 24 per cent of women.
People in Yorkshire & Humberside (34 per cent) and Londoners (32 per
cent) are the most likely to have received the majority of their retirement
a professional adviser.
"Prudential" is a trading name of The Prudential Assurance Company
Limited, which is registered in England and Wales. This name is also used by
other companies within the Prudential Group, which between them provide a
range of financial products including annuities, life assurance, bond
investment, pension scheme (
www.pru.co.uk/pensions_annuities/prudential_pensions/), a tax
calculator, retirement plans and a pension guide (
Prudential offers customers pensions and annuities, pensions retirement
income, insurance and investment opportunities.
Notes to Editors:
Survey conducted using online methodology by Research Plus between 6 and
14 December 2010
among 10,143 UK non-retired adults aged 45+ including 1,005 planning to
retire in 2011 using an online methodology.
Media enquiries Ben Davies 3 Sheldon Square London W2 6PR +44(0)20-7150-3017
Tags: April 27, London, Prudential, United Kingdom