Those who ignore financial advice ‘could be disadvantaged’

People could be risking debt problems when they retire by not seeking financial advice before they finish work.

Prudential has released figures that show fewer than one-in-five individuals who were set to retire in 2010 sought guidance from a financial adviser.

The company’s Class of 2010 report disclosed that 35 per cent of those questioned asked friends and family for information on the matter, while 25 per cent consulted newspapers, magazines and the internet.

Vince Smith-Hughes, head of retirement at Prudential, said that individuals who only use these methods could be missing out on valuable advice.

He remarked that if people “rely solely on this information to make a financial decision, it could lead to serious misdiagnosis and people could end up making irreversible decisions which leave them financially disadvantaged”.

Director of retail products at the Co-operative Bank John Hughes recently advised consumers in Britain to play closer attention to their finances if they wish to avoid money worries.

By Joe Shervin