Catering for generation 50+ and combatting the savings gap

Retail Financial Services

Retail Financial Services

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Facilitated and written by: Jeremy Oakley, KPMG
Emma Napier, True Potential

Headline finding 1:

Pension freedoms has caused a spike in demand for guidance and advice among the over 50’s.

Headline finding 2:

Most people lack the confidence or capability to either manage their own finances as to seek professional advice. Education may be a long term solution.

Headline finding 3:

Whilst demand for advice has increased by 66%, half of those do not follow the advice. The cost of advice is a major barrier but fear of looking silly or being locked in also holds people back.

Headline finding 4:

The work place will be critical for increasing financial literacy and engagement. In particular, understanding of risk needs improvement.

Headline finding 5:

In the short term, people are focused on decumulation options, but the savings culture needs to move from transaction to lifestyle planning.

Any next steps?

The Government, Regulator, employers and industry must actively promote financial education to raise capability beyond merely a single administration: this is bigger than a party political issue.