Millions of Retirees Forced to Stop Seeking Financial Advice

In a survey carried out for TheRetirementCentre.com an astonishing 81% of respondents over the age of 50 said that they will stop seeing their financial adviser as a direct result of having to pay a fee, this equates to 17 million out of the 21 million of the population aged over 50.

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Retired couple financial adviser

Retired couple seeing a Financial Adviser

It is clear from our research that Adviser Charging has had an enormous impact amongst the over 50’s market and it appears that being charged a fee will prevent people from seeking independent financial advice

(PRWEB UK) 22 January 2013

TheRetirementCentre.com has discovered in a survey that millions of people over the age of 50 will stop seeking independent financial advice as a direct result of new regulations that came into force at the end of 2012. Adviser Charging means that Independent Financial Advisers have to charge customers a fee for their work rather than receiving a commission for their work from the product providers.

The Financial Services Authority implemented Adviser Charging on 31st December 2012 following their Retail Distribution Review, with the purpose of “establishing a resilient, effective and attractive retail investment market that consumers can have confidence in and trust at a time when they need more help and advice than ever with their retirement and investment planning.”.

In response to the research, a spokesperson from the Financial Services Authority said “A review of the impact of adviser charging will be undertaken by the FSA later this year. People have always had to pay for financial advice, it has never been free as the advice has been paid through the form of commission, Adviser Charging is aiming to make the costs transparent.”

Dominic Fraser-Smith, Managing Director of TheRetirementCentre.com said “It is clear from our research that Adviser Charging has had an enormous impact amongst the over 50’s market and it appears that being charged a fee will prevent people from seeking independent financial advice.”

He then went on to say “In the past an independent financial adviser would have searched the market for the best deal for their client. With 81% of people saying that they will now not see a financial adviser the danger is that they will no longer be shopping around for the best deal. This could be detrimental for example if someone retiring stays with their pension provider for an annuity they could miss out on as much as 40% more income which they could receive if they had shopped around.

TheRetirementCentre.com is one of the companies that are able to offer guidance to customer in selecting an annuity that is right for them, gaining quotes from the whole market – and for no fee. Now there is no need for customers to feel that they are only left with a choice of doing nothing or paying a fee to see a financial adviser.

Notes to editors:

TheRetirementCentre.com is a leading retirement specialist, designed to help everyone over the age of 50 through the challenging process of retirement for free. Through our selected partners we are able to offer market leading products and services for the over 50's market. From maximising retirement income with our whole of market annuity service through to finding the lowest utility rates or even just saving our customers money on everyday purchases and a whole lot more. We often comment and are quoted on a wide range of issues affecting our existing and potential customers.

The research was carried out 18th January using an online suvery. 100 responses were provided by people who lived in the UK aged over 50 who had seen a financial adviser.

Dominic Fraser-Smith has 15 years Financial Services experience. Prior to establishing TheRetirementCentre.com Dominic worked for Aviva plc, where he held a number of senior positions in the Equity Release and At Retirement teams. He frequently provides comment on issues for the over 50's and is happy to be contacted directly for his view and opinion.


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Dominic Fraser-Smith Dominic Fraser-Smith

Managing Director TheRetirementCentre.com