Aegon UK’s recent ‘Second 50’ survey provides insights into the retirement expectations and concerns of all working age adults. It turns out that, while we all know the saying that as people get older, they get wiser, many would still like professional advice to prepare for retirement.
The survey reveals a strong demand for targeted support from regulated firms as people navigate the complexities of retirement planning. Among those aged 50-59, 64% expressed interest in receiving personalized financial advice, while 71% of individuals under 50 found such support appealing.
According to the survey, the top concern for UK individuals approaching retirement is running out of money, with 45% expressing anxiety about outliving their savings. Declining physical health (39%) and the inability to enjoy leisure activities (34%) also rank high among their worries.
The responsibility for securing a comfortable retirement has increasingly shifted to individuals, who are now expected to manage their own savings and investments. The UK’s Financial Conduct Authority (FCA) is currently consulting on new strategies to provide targeted support to those approaching retirement, which could help address the growing demand for personalized guidance.
Aegon has proposed several principles for ensuring that such support is both accessible and effective, including a focus on core consumer needs such as Individual Savings Accounts (ISAs), pensions, and protection products, as well as proactive outreach to consumers who may not be aware of the help available to them.
Steven Cameron, Pensions Director at Aegon, emphasized the importance of closing the "advice gap" in the UK, noting that many individuals find themselves caught between the high cost of comprehensive financial advice and the limitations of generic guidance. By offering more personalized support solutions, the financial industry can help individuals make informed decisions that will enhance their retirement prospects.