Just two per cent of people are willing to pay a typical independent financial advisor’s (IFA) fee for pensions advice, research from charity Citizens Advice revealed today.
While 47 per cent of the more than 2,000 people surveyed said they would be happy to spend some sort of fee for advice on defined contribution pension savings worth £61,000, only two per cent said they would be willing to pay over £1,000.
However, Citizens Advice discovered that the average price IFAs charge for such guidance is £1,490.
“The market needs to adapt to those without a big budget for financial advice. In light of the pension reforms it is clear that people want advice about how best to use their retirement savings,” said Gillian Guy, chief executive of Citizens Advice. “But many are falling foul of the price gap, as they are unwilling or unable to pay what can equate to an entire month’s salary in order to get advice.”