Over-50s reluctant to seek financial advice 'risking poorer retirements'

Only half (53%) of Britain's over-50s feel well prepared for retirement and four in ten (38%) worry about it, yet many are reluctant to seek financial advice.

In fact, it would take a windfall of over half a million pounds before most would call in a financial adviser.

That's according to research from the London Institute of Banking & Finance and Seven Investment Management (7IM).

Market research firm Opinium surveyed 2,000 UK adults aged over 50, each with assets of more than £50,000 (including property and pensions).

Of those steering clear of professional advice, nearly half (47%) think they can look after their own money, 28% say they don't have enough to justify an adviser and a similar amount (28%) think the costs are too high. One in five (19%) say it doesn't matter how much they inherit -- they would never consider getting financial advice.

Commenting on the findings, Peter Hahn, Dean at the London Institute of Banking & Finance, said: "Statistically a 50-year old Briton is expected to live to age 81 so they'll have to fund a minimum of 14 years in retirement. That means having a long-term investment strategy with less inflation-exposed cash, a balance many may not be confident about. So while over-50s say they feel well prepared, these findings suggest a poor understanding of long-term risk and reward, risking poorer retirements. And you don't need a £500k 'windfall' to make advice worthwhile. Advice can be really helpful in all sorts of circumstances and with much smaller 'pots' of money and assets."

The survey also found that almost half (48%) of those who are yet to stop work say they need to save more for retirement. Just over a third (34%) believe they will have to work longer than planned so they can afford to retire -- on average more than seven years longer than they expected when they set out on their careers.

Asked what they would do differently if they had their time again, 60% of over-50s would start investing earlier, 58% would save for retirement earlier, 30% say they'd spend less and 33% would get on the property ladder sooner.