About 60% of pension holders aged 55 or over would only be willing to stump up a maximum of £200 for financial advice when they withdraw from their pension, research suggests.
Consumers would accept paying an average of just £253, according to the One Poll survey, falling far short of the £500 average cost of an initial financial review, calculated by Hargreaves Landsdown.

The survey for money.co.uk found a large majority were against spending anything on advice at all. Only one in five of the over 55s surveyed said they were willing to pay for advice when they make a withdrawal from their pension and this dropped to just 13% of men.

When asked why, 59% felt they did not need it, 28% called it a waste of money, 27% failed to be able to afford it and 15% wanted their money quickly without any hassle. One in ten women said they felt intimated by advisers.

Just one in five will take the free 30 minute session provided by Pension Wise and cite it as a reason for not paying for the service of an IFA. To date just a quarter of the 85,000 people that have taken advantage of pension freedoms used this service.

{desktop}{/desktop}{mobile}{/mobile}

Despite a willingness to see a professional about their money, only one in three (38%) of those making a withdrawal said they fully understand the tax implications of doing so which could lead to a huge financial loss for some.

Hannah Maundrell, editor in chief of money.co.uk, said: “Our concern is that people will rush into a decision without fully researching the long term impact or costings, simply because they need cash fast. After all, many people making a withdrawal from their pension are doing so to keep up with day to day living expenses.

“Looking before you leap and all those other clichés really are the name of the game, especially when you're gambling a financial future that you've worked so hard to save for.”