UK retirees need advice but are reluctant to pay

10 November 2016

Retirees in the United Kingdom need advice on how to deal with their retirement income but too few are prepared to pay for it, according to UK Pensions Institute director, Professor David Blake.

Addressing the Association of Superannuation Funds of Australia (ASFA) conference on the Gold Coast, Blake pointed to the problems which had arisen in the UK flowing from the freedom of choice regime around retirement incomes which had seen a shift away from annuities.

He said this had given rise to a situation in which retirees were opting to take lump sums but were doing so without obtaining appropriate advice.

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Blake said this had given rise to a situation where scammers had never had it so good at the same time as reinforcing the need for people to have viable retirement strategies.

He said that general guidance was not enough but while people needed more detailed advice, few were prepared to pay for it.

Blake said that while some effort had been made to provide people with "decision trees", even this was problematic because of the regulatory implications of such arrangements.

He said that while both Australia and the UK did not have a deferred annuities market, he believed Australia was more clearly headed in the right direction.

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There are two thoughts that spring to mind from this

1 - You get what you pay for.
2 - You cannot protect people from themselves.

When you have all these financial commentators ( that dont actually give personal advice nor are they licenced) bashing advisers in the UK for years and years people start believing the hype, now retirees dont want to pay for advice, so where are those that said you dont need advice? Thats right living here in australia as expats working for some consumer organisations trying the same crap here!

Could not agree more Simple Simon.

I will add point 3, our job is to lead a horse to water.........

WOW - Perhaps we could recognise this and get the super funds to pay advisers to offer appropiate advice to clients of the super fund. Or at least subsidise the cost of the advice. OPPS - that was the system and we stopped it. HANG ON - Qsuper states it is "contributing to the cost of adviser fees up to $700". Perhaps there is a way to pay for advice to be subsidised by the super fund to make it affordable to members. Come on super funds - follow the lead of your competitor Qsuper and do the right thing for your members.

this comes out a day after ASIC wants to charge advisers over a $1,000 extra a year for their new levy,

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