The research suggests that 76% of consumers do not know the difference between financial advice and guidance and would like clearer communication about the different types available to them, something Aegon sees as worrying.
Meanwhile, 65% believe they are responsible for knowing when it is appropriate to seek advice.
The survey also found only 20% would be confident deciding how to access their pension, while merely 12% of consumers felt confident reviewing the performance of their pension or investments.
The research further showed that 27% believe that a recommendation from a friend can be financial advice, 26% view information on online forums as advice, and 22% count information in their morning paper as advice. The study comes less than a year after the UK government launched its Pension Wise service, designed to offer guidance to people regarding their new pension freedoms.
Steven Cameron, regulatory strategy director at Aegon said: “It’s good to see people want to take personal responsibility, with a clear majority of people believing that they are ultimately responsible for educating themselves on the benefits of advice, and only a minority believes this is the responsibility of government (27%). That said, the industry needs to work hard to explain how professional advice differs from guidance in terms of the responsibility advisers assume and also around access to compensation schemes if things do go wrong. We need to reduce levels of confusion and get more people seeking the right form of support for them.”
“People are being presented with choices not only regarding how they access their savings at retirement but also around how they seek help. There are lots of ways of seeking help, whether it’s through regulated financial advice, guidance via Pension Wise or information from their pension provider, added Cameron. “The problem is that people are confused by what they get under each of these options and if that’s not clear, how can we expect them to make an active choice?”
