Financial advisors can demystify pensions

Zurich Life carried out research to gain insights into peoples’ attitudes towards financial advisors when it comes to pensions and savings. The research also revealed the benefits of financial advisors in general with 78% of respondents stating they would recommend a financial advisor to family and friends.

The research showed that 14% of adults in Ireland stated they have a financial advisor*. Of those that have a financial advisor, 42% said the reason they have one is to help plan for their retirement. Over a third of those who do not have a financial advisor are likely to engage with one in the future.

Over half (52%) of respondents to the survey said they have a pension. Of those who are not currently paying into a pension, almost half intend to start a pension in the future. When asked how much is in their pension pot, 57% said they didn’t know.

Engaging with an expert

Although 14% of respondents to the Zurich research stated they have a financial advisor, 86% do not. Of those that have a financial advisor, 42% said the reason they have an advisor is to help plan for their retirement.

Of those who have a financial advisor, three in four believe the advice they have received has had a positive impact and 78% would recommend a financial advisor to a friend or family member.

Almost a third of adults who do not have a financial advisor feel that if they were to engage with one, it would have a positive impact, and 38% are likely to engage with one in the future.

Pension savings

The research also found that 71% of respondents have some form of savings and investments and over a quarter are saving or investing for their pension.

Although 52% of adults in Ireland have a pension, of those who are not currently paying into a pension, almost half intend to start a pension in the future.

Over half (57%) of adults with a pension don’t know how much is in their pension pot. However, respondents that do know the values of their pension have on average €177,703 in their pension pot.

Financial planning

When it comes to understanding financial matters, almost half of respondents said they have a medium level of understanding with 35% having little or no understanding of financial matters.

When asked if they felt financially secure and confident that their future financials are secure, 42% said they did.

Wealth management during a pandemic

A third of adults have stated that their financial situation has been negatively impacted by COVID-19 through reduced income or increased costs. However, over half of respondents have some form of savings in place to help them reduce the financial strain due to the pandemic.

Just over a quarter of those surveyed believe that having a financial advisor helped during COVID-19 and of those who believed their financial advisor helped during COVID-19, 92% believed the advice they received from their financial advisor was beneficial.

*Source: Zurich Financial Advisors Research Study, July 2020