The Retirement Partnership has called for the creation of a register of IFAs willing to give retirement advice to clients with small pension pots.
Speaking at the Money Marketing Retirement Summit, The Retirement Partnership director David Dunn said people with less than £50,000 find it difficult to get advice.
He said many IFAs will not take on clients with small pots because it is not profitable.
Dunn said: “The number of people turning 65 each year has roughly doubled in the last 10 years and it is set to soar again. In 2012, more than 800,000 people in the UK will turn 65. That is a serious number of people hitting retirement. Many of them will struggle to have adequate means to fund that retirement and what little they have will have to last longer than any other generation have had to provide for their retirement.
“IFAs have to make a profit, they have to pay salaries and they have overheads to meet but many of them now will find it uneconomic to deal with small annuity cases and often they draw the line at about £50,000. Nine out of 10 annuities were bought last year with less than £50,000, so it means a significant number of people fall outside the advice net. We would like to promote a register of IFAs who are prepared to look at case sizes of less than £50,000.”