All financial advice is important, and for many older people, advice at retirement is extremely important. Many people fall into the trap of thinking it is easy and they can make retirement decisions without financial advice. However, Retirement advice is complex and unique for the following reasons:
- There are many different pension options and retirement solutions
- It involves more longer-term planning than most other areas of advice
- Clients may have complex needs and objectives when they retire
- Advisers need specialist skills to manage the technical and behavioural aspects of retirement
Complex technical and behavioural factors
Retirement advice can be complex and unique because there are many more technical and behavioural factors to take into account than with other areas of financial advice.
A good adviser should have a good understanding of the technical matters such as how annuities and drawdown work and the various risks associated with each option.
They should also have a good understanding of the behavioural factors they may influence the advice process.
Behavioural biases can affect investment behaviour, but most people probably are not aware of the behavioural biases that influence their decisions. These include:
- Loss aversion
- Hyperbolic discounting Money illusion
Why you should speak to us
There are three reasons why should speak to one our financial experts
- There is a lot at stake
- It’s more complex that it seems
- Most people need some help, guidance or advice