Almost half (49%) of retirees reached retirement without reviewing their finances or seeking financial advice, according to research by retirement specialists Just Group.
The survey revealed that more than a third (35%) of respondents retired without first assessing whether they could afford to do so.
In addition, one in seven (14%) stated that they ran out of time to make any plans as they were forced to retire earlier than expected.
One-in-10 consulted a financial adviser
The research also found that fewer than one-in-10 (8%) consulted an independent financial adviser (IFA).
With 3% saying they met with an IFA through their employer and 6% saying that they had used the government’s guidance service, Pension Wise.
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Some people took a DIY approach and made their own calculations as over a third (34%) said that they had conducted a full review of their savings, looking at their likely incomings and outgoings.
A further 10% said that they had spoken with their friends and family for informal help and 6% had used other sources of support.
Stephen Lowe, communications director at Just Group, commented: “Many people are at risk of being caught in a retirement ‘blind spot’ where they’re vulnerable to events unexpectedly knocking them off course.
“There is a lot to weigh up including whether you want to stop work immediately or go part time; how long you can reasonably expect to need a retirement income; making gifts and leaving inheritances; and how you might meet the cost of later life care if it’s needed.
“Things rarely go exactly as expected but having a plan will make it easier to understand your options and handle life’s surprises.”
Lowe added: “Receiving financial advice remains the gold standard for preparing financial plans ahead of retirement and, if possible, we’d encourage people to explore this option.
“The advent of the digital world means there are some lower-cost online and hybrid solutions available for guidance or advice. At the very least people should make sure they take up their entitlement to use Pension Wise, which provides free pension guidance.”
