Just 31 % of over 50s plan to consult a professional financial adviser for information on their retirement options, a significant fall from the 42% figure recorded last year, according to new research from Retirement Advantage.

The findings come from Retirement Advantage’s latest annual Retirement Sentiment Index report, which revealed that the government’s guidance service Pension Wise is, for the first time, the more popular source of information, with 46% of over 50s planning to use the service, up from 42% in 2017.

Internet has experienced a sharp decline, down from 44% to 36%, but is still the second most favoured option, while 33% claim that they will seek information from their pension provider, a slight fall from a recorded 35% in 2017.

However, the research revealed that that the dip in popularity is not driven by a distrust of advisers, but by consumers concerns over costs. This has been the most popular reason given for over 50s not contacting an adviser over the past two years, with 42% claiming that it is the primary reason. The promotion of Pension Wise has also contributed to this, with 17% of over 50s stating that they are not planning on consulting an adviser because they believe that government is recommending Pension Wise.

Retirement Advantage pensions technical director Andrew Tully said: “The increase in trust for professional financial advisers is good news, but it is concerning that people appear to be turning their back on advice because of the promotion of Pension Wise. Hopefully people will view Pension Wise as a first step towards seeking full advice.

“Just as the pension freedoms have created additional complexity, more people have decided to DIY retirement. These decisions are being made in part due to the perception about the cost of advice, but also because people show a high level of confidence in being able to make complex decisions on their own.

“Part of the solution will come from tackling the advice capacity issue – there are around 25,000 registered advisers in the UK, compared with around 400,000 people who reach retirement age each year. Developing streamlined advice models that can engage and cater for the many people either unwilling or unable to pay for advice will be vital.”

Tully concluded that “ultimately” there are no substitutes for the benefits of professional advice.

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