Just over half (53%) of Britain’s over-50s felt well prepared for retirement and four out of ten (38%) worried about it, but it would take gaining more than half a million pounds before most would call in a financial adviser.
The findings emerged from the latest joint research by The London Institute of Banking & Finance and Seven Investment Management (7IM).
Of those shunning professional advice, nearly half (47%) thought they could look after their own money, 28% said they did not have enough to justify an adviser and a similar amount (28%) thought the costs were too high.
One in five (19%) said it did not matter how much they inherited – they would never consider getting financial advice.
Women were more reluctant than men to consult an IFA – the advice tipping point for most men was just under £499,171, but it was £544,249 for most women.
The research, in which Opinium surveyed 2,000 UK adults aged over 50 with assets of more than £50,000, also revealed a quarter (25%) of women said they held stocks and shares outside of an ISA or SIPP, compared with 40% of men.
Peter Hahn, Dean at The London Institute of Banking & Finance, said: “Statistically a 50-year old Briton is expected to live to age 81, so most will have to fund a minimum of 14 years in retirement.
“That means having a long-term investment strategy with less inflation-exposed cash, a balance many may not be confident about.
“So while over-50s say they feel well prepared, these findings suggest a poor understanding of long-term risk and reward, risking poorer retirements.
“And you don’t need a £500k ‘windfall’ to make advice worthwhile.
“Advice can be really helpful in all sorts of circumstances and with much smaller ‘pots’ of money and assets.”
Michael Martin, private client manager at 7IM, said: “This is the first generation that’s really having to confront the double whammy of longevity and diminished pension returns and for some it’s proving painful.
“They started out their careers dreaming of packing in at around 60.
“Many now face going until they’re 70, and often longer.
“There are a number of steps savers should consider to address this problem and one of them is taking a sensible amount of investment risk.
“Good advice can make a big difference in helping you work out what ‘sensible’ means in your circumstances and where best to invest to generate the returns you need.
“They can also give you a proper plan – so you don’t reach retirement age with only debts and regrets.”