Over 70 per cent of IFAs believe people are resigned to a significant reduction in their standard of living in retirement.
Aegon’s third IFA Insights survey also finds that 76 per cent of IFAs think people are prepared to work longer before taking their pension.
Eighty-eight per cent expect the average retirement age to rise significantly in the next 10 years and the same percentage believe more people will be unable to retire at the age they want to retire. The survey finds 93 per cent of advisers think confidence in pensions has decreased significantly and many people are looking for other means of investing for the future.
Ninety-one per cent say Government U-turns are damaging confidence in pensions and 84 per cent expect equity-release products to become more popular in the next 10 years with the same percentage saying parents will be expected to support their children for longer.
Director of risk and regulation Graham Dumble says: “IFAs can bring to the debate a valuable perspective on the changing needs of their clients as we work together to influence the shape of future legislation. The results of this research show British people are heading for a sharp wake-up call in retirement planning.
“Unless they are prepared to accept a significant fall in their standard of living in retirement, they will have to save more or work longer. Fewer will be able to rely on inheritance.”