Top concerns for consumers and advisers about their retirement

The rising cost of living and inflation, running out of money, paying for care in older age, political instability and future pension rule changes, and paying more tax than necessary were the top five concerns mentioned by consumers when AKG asked them about what worried them when thinking about their retirement. Here I analyse the key findings more closely, including what advisers said worried their clients most.

The survey findings, published in AKG’s ‘Ten Years of Freedoms – Lessons, Gaps, and the Road Ahead’ paper, show no real surprises and illustrate the challenges around retirement planning and decision making against the current backdrop. As highlighted within the paper, this presents an opportunity for advice firms and emphasises the importance of high-quality information and tailored advice.

AKG were also keen to get the perspective of advisers on what worried their clients at- or post-retirement. In the adviser survey, the top factor selected (47%) was achieving the appropriate level of risk/security to take, seemingly the ultimate conundrum in the current climate. Investment volatility (38%) was also a concern. Factoring property into retirement planning (45%) and looking after relatives/inheritance tax planning (44%) were also key client concerns highlighted in the adviser survey. 

From my perspective – and perhaps reassuringly – all the concerns highlighted above all point to issues which are more likely to be supported and tackled by access to professional financial advice. Uncertainty and not knowing what to plan for was a theme from the research and, again, this reinforces the need for clients to regularly review their retirement plans with their advisers.

• Read the full AKG research paper
• Creating retirement income for your clients