Recent research has revealed that of the retirees investing their pension pot, for a third, it is the first time.
According to the YouGov research conducted on behalf of Zurich, two-fifths are making the decision to invest without taking any financial advice beforehand.
Failing to obtain advice, however, could be a major mistake. This is the view of Zurich, who state that retirees could be putting their savings in danger.
Alistair Wilson, a pensions expert at the firm said: ‘In the build-up to retirement, many savers rely on pension firms to make investment decisions on their behalf, meaning many have no hands-on investment experience when they take control of their pot.’
‘For retirees not getting advice or guidance, there is a danger they could end up picking the wrong investments or taking money out of their pot too quickly. This is putting a worrying number of people at risk of running out of money in retirement.’
In light of the research results, Wilson is urging the government to introduce mandatory financial advice where retirees are utilising the pension freedoms.
