An increasing number of retirees are shunning financial advice and guidance in favour of planning their own path to retirement, a new study by Canada Life has found.
The research showed that four in five (79%) of over-55s who have retired did so without the help of financial guidance or advice.
Instead, they opted for a DIY approach to managing their finances.
Nearly one in three (29%) in the same age group admitted they are not experiencing the retirement they dreamed of.
However, two in five (39%) said they were.
The research also found that one in ten retirees (11%) did not anticipate just how much money they would need in retirement.
They said they are finding life after work more difficult than they expected and wished they’d planned properly.
More than a third (36%) said they had experienced unexpected health challenges.
However, 27% said that although they weren’t living the retirement they’d planned, they were still very happy.
Canada Life said money, or lack of, are big drivers of overall retirement satisfaction for the over-55s.
Inflation and the cost-of-living crisis are also having a negative effect on retirees, with one in five (21%) saying they hadn’t factored rising costs into their plans.
Preparing for other unexpected costs has also caught retirees out, with 13% receiving bills they weren’t expecting.
A relative lack of savings (12%) was cited by one in ten who said they didn’t have enough money to live the retirement they planned, while a similar number of over-55s (11%) did not anticipate just how much money was needed to fund retirement.
Canada Life Retirement managing director Tom Evans said: “It’s clear from this insight that people’s experiences of retirement vary quite widely.
“While a lack of retirement funds and the impact of rising costs are clearly issues facing the current generation of retirees, unexpected health issues trump both of those and the dreams of many have been shattered.
“Planning your retirement and ensuring it is flexible enough to navigate the many challenges you will face is vital to feel in control to enjoy your later years.
“Engaging the services of a qualified financial adviser early on is a fundamental part of that process.
“An adviser will not only be able to help with product choice, investment selection and tax, but will help you navigate any unexpected bumps in the road along the way.”
Tools for DIY financial planning (e.g. Guiide, MyFinanceFuture) are increasingly becoming available, making the task easier for individuals to do themselves, especially if they don’t have complex finances or high levels of wealth requiring more sophisticated tax planning (e.g. trusts etc)
DIY investment is not for everyone and some end up
with little left.
On-line broking is a business without responsibility and anybody over 80 is treated like an idiot assumed
to have a mental problem when in need of advice.
Never complain, never explain?
London South East, LSE. Mapp LSE chat
Diary of a Private Investor who got lost
and has given up.