Cost and trust are still the main barriers for people considering financial advice, new research published by Retirement Advantage has shown.

Forty-two per cent of over 50s who don’t plan to use a financial adviser said they are put off by the cost, up from 38% last year.

Trust in advisers has improved over the last year, but one in three (31%) still think trust is an issue. Thirty-one per cent don’t feel consulting a professional adviser is necessary, while 18% think it would not bring any benefit.

Data revealed in the latest Retirement Sentiment Index report Expanding Horizons also revealed the internet continues to remain the most popular source (44%) for information on retirement finance, closely followed by the government’s Pension Wise guidance service (42%).

Just over a third of the over 50s (35%) say they will rely on their pension provider, with one in six (18%) saying they would consult their employer.

Retirement Advantage pensions technical director Andrew Tully said: "The increase in trust in professional advisers over the last year is positive. However, the increase in those citing cost as a reason for not consulting an adviser is disappointing, particularly in light of the one in six that say they would trust their pension provider to give them the information they need.

"Previous analysis has shown that people who don’t shop around for the best deal on products like annuities and drawdown could lose out on thousands of pounds of income over the course of retirement. So it is vital that more is done to encourage people to get professional advice and consider all the options available to them to make the most of their hard-earned savings."

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