Less than 30% nearing retirement have used an adviser

Only 28 per cent of those approaching retirement have used a financial adviser or wealth manager.

A study by Oxford Risk revealed 41 per cent of people approaching retirement admitted to rarely reviewing their financial retirement plans either with or without the support of a financial adviser.

Out of those who did review it, 14 per cent did it once every six months, 26 per cent reviewed once a year and 5 per cent reviewed it once every two years.

Out of those who reviewed their plans at least once every six months, 73 per cent had clarity on their savings options.

Compared to 26 per cent of those who reviewed their plans less than once a year.

From those who rarely looked at their plans, 44 per cent had no clarity on their savings options for retirement.

When asked if they would prefer to leave behind a financial legacy for friends or family, or maximise their income during retirement, 62 per cent said they would prefer to maximise their income during retirement.

In comparison, 18 per cent said they would prefer to leave behind a financial legacy for friends or family, while 20 per cent were undecided.

Greg Davies, head of behavioural finance at Oxford Risk said: “Our research reveals that many over-55s nearing retirement are proactively seeking financial advice to optimise their investments.

“Those who regularly review their retirement plans are not only more informed about their savings but also better equipped to convert them into income that meets their goals.

“In today’s complex retirement landscape, particularly since the introduction of Pension Freedoms in 2015, personalised financial advice is essential.

“We are witnessing a surge in demand for tailored guidance, prompting advisers to embrace innovative technologies that enhance client outcomes.”

alina.khan@ft.com