Three quarters (74%) of financial advisers have raised a red flag about people in the UK not tackling their long term financial planning early enough, ranking it as the biggest threat to financial security in retirement, according to Aegon’s new Adviser Attitudes Report.

The report, which tracks attitudes and concerns of the UK financial adviser market, reveals that with three quarters of advisers’ clients (78%) aged over 45, they are looking to engage clients earlier to break the cycle.

Around one in nine (11%) advisers are already looking to close the advice gap and target younger people so that they understand the benefits of investing early. A third of advisers (33%) said however that they find it a real challenge to reach this younger group.

Aegon pensions director Steven Cameron said: “There have been huge strides in getting more people saving for retirement with nearly eight million people now saving for retirement through auto-enrolment. This includes younger age groups and while many under the age of 45 are now saving regularly, they may be doing so without fully understanding how best to meet their long term financial goals. Advisers have a key role to play, providing valuable advice on a wide range of elements, including setting appropriate contribution levels and advising where to invest to meet long term aims.

“By engaging with savers early in their financial journey, advisers can put them on the right track. Advice needs differ with life stage so it’s important to offer relevant and timely insights and support, with technology offering new opportunities.

"Advisers also believe ‘streamlined advice’, which focuses on a particular need, has a role to play in attracting a younger client base, with nearly seven out of ten (68%) of advisers considering it a useful way of attracting younger clients. Advisers also see streamlined advice as appropriate for helping auto-enrolled clients make fund choices within their employer’s scheme.”

Share Story: