Independent financial advice key to retirement security

A wide-ranging new survey on Britain's retirement prospects comes to the remarkable conclusion that, whatever your circumstances, you will be better off if you consult an Independent Financial Adviser (IFA) - even if you have no savings. The research commissioned by MGM Advantage, the retirement income specialist, is an exclusive inter-generational study of more than 3,000 Britons, surveyed by age, gender, region and key city, marital status, health status and exposure to independent financial advice.

MGM's Retirement Nation survey, carried out by Opinion Matters, contrasts Britain's preparation levels for retirement as well as their hopes and dreams for the golden years. The survey finds a clear link throughout the research between using an IFA and increased wellbeing - yet more than one in two Britons have never used or sought independent financial advice. A minority of people in Britain, just 14 percent of those surveyed, have sought specific independent financial advice about their retirement. This 14 percent are now reaping the benefits financially and in their quality of life.

Retired people are twice as likely to be forced to downsize if they have never sought independent financial advice, and four times more likely to return to the workforce in order to make ends meet. Just three percent of retired people who have used an IFA expressed ‘painful regrets' about their retirement, compared to eight percent who have not used an IFA. The survey found retirement preparation levels to be lowest in Wales. While around the nation, Sheffield, Brighton, Cardiff and Plymouth are all so-called ‘hotspots of low preparation', defined as being where more than 50 percent of the pre-retired population say they're not prepared at all.

Chris Evans, Chief Executive of MGM Advantage said: "Our nationwide research suggests that in many ways, an IFA is better than a life coach. It is a startling acknowledgment of the contribution financial intermediaries have made over the past 25 years to Britain's quality of life in retirement. We now know for certain that there's a direct link between financial security in retirement and seeking financial advice, even if you don't have a substantial nest egg. This is particularly encouraging for people who are convinced that they have put too little aside or that it's too late to start saving."

MGM Advantage, formerly known as MGM Assurance, re-launched this week as a specialist in the retirement income market.