Most consumers want advice on how to access their pension pot in the wake of the Budget, but research suggests small pot sizes means most will not be able to afford it.
PricewaterhouseCoopers has published research into whether consumers are looking for advice on their pension following the radical shake-up announced in last month’s Budget allowing people to access their entire pension pot from age 55 from next April.
Based on a survey of 1,208 consumers aged between 50 and 75, PwC found 63 per cent of respondents intend to pay for advice on accessing their pension at retirement.
However, half of the respondents in the survey had pension pots worth £40,000 or less.
The company estimates that only 16 per cent of pension pots will be invested in annuities following the Budget reforms.
PwC insurance leader Jonathan Howe says: “The key point here is many consumers may not have a big enough pension pot to justify significant advice fees. What we will see is an advice ‘black hole’ – a supply gap between what consumers want and what they can get.”