While a large “advice gap” remains for those around retirement, leaving the workforce is still associated with higher levels of financial confidence and satisfaction.
In “Retirement Transitions in Four Countries,” a recent report by Vanguard, one-in-three pre-retirees in the U.S., Canada, the UK and Australia were preparing to leave the workforce with no access to formal financial advice.
In the survey, two-thirds of the respondents reported having access to private sources of formal financial assistance through an advisor, a workplace retirement program or a financial institution, leaving one-third of individuals approaching retirement with only informal sources of help or no assistance at all.
U.S. respondents fared a little better, with 77 percent of retirees who left the workforce within the past 10 years able to access formal advice when approaching retirement, and 78 percent of pre-retirees planning to retire within the next 10 years utilizing formal assistance.
The most common reason for not accessing a financial advisor, cited by 54 percent of pre-retirees, was that traditional financial advice is viewed as prohibitively expensive.
Source: FA Magazine