Trust is key to extending professional pensions advice

Defaqto’s recently published ‘Retirement Savings & Income Report 2007 – A review of the individual retail pensions market in the UK’ – shows that many consumers still trust themselves and their family and friends for advice on retirement planning.

Defaqto’s research surveyed 1,000 consumers of which 27% stated that they trust their own judgement when it comes to advice on planning for their retirement, 23% trusted their friends and family and 12% trusted their spouse/partner.

In terms of professional advice, the research showed that overall 28% of consumers trust a financial adviser for retirement planning advice and 24% would trust their employers.

Lead author of the report Matt Ward, Defaqto’s Principal Consultant for Pensions and Wealth Management, stated that “The industry needs to find ways to build trust with the public and this will pay rich dividends in terms of both the amount of business generated as well as ensuring that people get the best advice in this vital area of their personal finances.”

Defaqto’s report also includes financial background information on key product providers3 as well as data on the intermediaries’ preferred pension products, the evaluation of what is important to intermediaries in terms of product delivery and their assessment of the quality of service received by the principal providers.