The firm, which surveyed over 2,000 UK pre-retired adults aged between 18–65, also found that 24% of the 18-24 group feel their later life plans will be worse than their parents.

The survey also shows that 35-44-year-olds are the least optimistic. Only three-in-10 (30%) believe their retirement will be better than their parents’, compared to 35% who believe it will be worse.

Of those who believe their retirement will be better than their parents, quality of lifestyle, physical and mental health, and the ability to travel are the top factors for this.

However, many respondents voiced concerns about how they will afford their retirement lifestyle. Some 40% of future retirees believe their ability to fund their retirement will be worse compared to their parents and almost half of respondents (48%) believe the possibility of retiring early is low.

The study also found that economic setbacks, such as the cost-of-living crisis and housing costs, are the key reasons why young people believe they cannot sustainably fund their retirement. Over half of UK adults (56%) fear that their standard of living will decline during retirement. Almost half (47%) worry about how they will afford housing costs into their retirement.

Despite these concerns, FSCS concludes that low levels of awareness around planning retirement partly explain these figures. When participants were asked about saving for retirement, a quarter (25%) of UK working adults aged 18-65 had a lack of understanding about pensions.

Overall, only 37% of pre-retirement Brits feel confident about planning for their later life.

Lila Pleban, chief communications officer at FSCS, said: “It’s encouraging to see the optimism in future UK retirees, but it’s unsurprising that many are also concerned when it comes to their ability to fund their retirement dreams. The UK’s current economic climate, including the rising cost of living and housing costs, is a source of concern for those making any major financial decision.

“It’s clear from our research that those thinking about, or approaching, retirement must have access to the knowledge and tools they need so they can choose their products wisely as they try to bridge the gap between the retirement they expect and their concerns about how they will fund it.”

It said that this figure has remained broadly static since last measured in 2019, when it totalled 48%.

The survey also found that some children were more likely to receive a meaningful financial education than others, depending on location.

Scottish children scored highest (52%), followed by those in Wales (51%), England (46%) and Northern Ireland (43%).

Children were also more likely to be financially educated if they lived in a higher income household (50%, compared with 44% in lower income homes) or living in an urban area rather than a rural one (48% and 40% respectively).

‘Profound consequences’

Sarah Porretta, executive director of Maps, said: “Our experiences in childhood prepare us for adulthood and learning about money is no different. Our financial decisions can bring real benefits and profound consequences, so it’s crucial to learn from a young age.

“The race is on to educate the nation’s children and everyone from banks and building societies, to foundations and financial institutions has a big part to play. Parents and schools can also make a huge difference by linking money skills with everyday experiences, both inside and outside the classroom. The target is two million more children to receive a meaningful financial education by 2030.”

Parents more open to talking to their children about money

Sarah Pennells, consumer finance specialist at Royal London, added: “Today’s research shows there is still a lot to do to engage younger people in money matters and to help them be financially fit for adulthood and managing their lives in the years ahead.

“Although the Maps findings show a clear lack of progress in engagement on financial awareness and money-management skills in the seven-17 age bracket, Royal London’s own research shows that parents have become more open to talking to their children about money over the years.”

Royal London’s research, published in July 2022, revealed that three in four (76%) of 18-24-year-olds had spoken to their parents about money matters when they were growing up. In contrast, less than half (43%) of those aged over 65 said that they’d had conversations with their parents about money in their younger years.

Pennells said: “While it’s positive that parents are talking to their children, making them ‘money confident’ involves more than conversations – however useful they are. If children aren’t getting enough financial education in schools or aren’t encouraged to understand how money works or to get into the savings habit early, they may find the money decisions they have to make later on in their life are that much harder.”

Only 16% of non-advised UK adults see financial advisers as being the ‘most trusted’ with that figure doubling among advised adults.

A lack of trust of financial advisers is a “significant issue for the public at large”, Alex Ingrim, senior investment analyst at Chase Buchanan told International Adviser. People are reluctant to engage with advisers causing them to take a ‘DIY’ approach when it comes to saving, investing and retirement planning.

This can lead to serious mistakes being made to their financial futures. Stuart Ritchie, GSB Capital managing partner, warned: “I can see this potentially exacerbating with tools like ChatGPT.”

Historically, the industry had been built around a sales process and renumeration through commission. Which Ingrim suggests is what has caused the scepticism towards advisers.

Ritchie highlighted that many people in the UAE have also had bad experiences with advisers, further fuelling distrust of the industry.

He said: “Normally people have been sold products that are unsuitable, however the poor victim finds this out much later down the line and typically, by then, the adviser has disappeared off into the sunset having banked a large up-front commission on day one.”

Boring Money chief executive Holly Mackay added: “A lack of clarity about the benefits of financial planning, combined with opacity around charging, are key contributors to a lingering sense of suspicion about the profession.”

Long term decline

A host of bad experiences has led to fewer people approaching advisers, ultimately causing them to lose out financially long term.

According to the Boring Money data, since 2021, there has been a 9% decline in the number of UK adults reporting that they would go to a financial adviser.

The decline in use of IFAs has created a barrier to a greater adoption of advice in the UK.

To bring this barrier down, Ingrim believes that the industry needs to communicate better with clients about how things have changed in the past decade.

“Our industry should promote ourselves to the public as a new generation of service provider on par with other professionals like lawyers and accountants,” Ingrim added. “Clients need to be made aware that business models, educational standards and service offerings have changed to mirror other industries held in high regard.”

One way that the industry can improve its image is to uphold a level of professionalism.

Sally Plant, assistant director of financial planning and education development at Chartered Institute of Securities and Investment (CISI), said: “As a professional body we set standards and ensure these standards continue to be met. Whether that be assessing initial competence via exams, online learning, professional assessments or by providing a varied and stimulating CPD programme to ensure these skills and knowledge are update to date and relevant.”

Financial education

GSB’s Ritchie thinks that more education needs to be provided so that people can be better informed about the industry and what advisers can do for them.

He said: “Advisers should spend time in schools helping educate the next generation as well as providing education on the benefits that ‘real’ cash-flow modelling can bring to all of us.”

The Money & Pensions Service (Maps) published survey results on 14 June showing that only 47% of children have received a meaningful financial education at home or at school.

By providing people with a better understanding of what advisers do, and the benefits that they can bring to their finances, it can go some way towards building up trust between clients and advisers.

Ingrim emphasises how crucial transparency is to building better client relationships at Chase Buchanan.

He said: “We want our clients to understand that as a business we have a responsibility to be both fair and profitable with our charging structure. After all, no client wants to work with a failing advisory firm.”

Similarly, Ritchie explained that his firm clearly defines “the process that clients will go through in financial planning and what they can expect to receive,” to help create a trustworthy rapport with clients.

Providing transparency and better education on the financial advice industry can help to de-mystify the profession and highlight the many positives that advisers can provide to people’s finances.

The UK lifeboat scheme has announced its chief executive Caroline Rainbird has left.

Fiona Kidy, chief financial officer, has agreed to step up to lead the organisation while it starts the search for a successor.

The Money and Pensions Service (Maps)

Caroline Siarkiewicz has confirmed to the board that she will not be taking up a second term.

She was appointed as chief executive in January 2020 having been acting chief executive since June 2019.

Siarkiewicz will step down at the end of January 2024 after four years leading the organisation through a period of significant change.

The search for a successor will commence shortly and will be led by Maps’ chair Sara Weller. The appointment will be subject to the approval of the Secretary of State for Work and Pensions.

SEI

Jim London has been named as chief executive of SEI Investments (Europe) Limited (SIEL).

He will continue to maintain his responsibilities as head of SEI’s UK private banking and wealth management business.

London will succeed Brett Williams following his retirement, effective 30 June pending regulatory approval.

With more than 25 years’ experience in financial services, London currently serves as chief operating officer for SIEL.

Hargreaves Lansdown

The investment firm has appointed Brown Shipley’s investment head Toby Vaughan as chief investment officer.

Vaughan was previously head of multi strategy solutions at Santander Asset Management, a fund manager at LV Asset Management, and director for asset allocation at F&C Asset Management.

Marwyn Acquisition Company II

Will Self has been appointed as chief executive of the London Stock Exchange-listed acquisition vehicle.

He was previously chief executive for the pensions division.

Prior to that, Self was at Curtis Banks Group, where he was chief executive.

Waverton Investment Management

Steve Chhoker has joined the firm as chief financial officer.

Chhoker has close to two decades of experience in wealth management, previously holding senior finance positions at WH Ireland, Saunderson House and Brooks Macdonald.

He replaces David Welch, who leaves after serving 26 years with Waverton.

Axa Investment Managers (Axa IM)

Caroline Portel has been named as global chief operating officer, effective 1 July 2023.

She will take over from Laurent Caillot, who will pursue a new professional endeavour outside of the Axa Group.

Verso Wealth Management

The advice company has hired Jonathan Fell as group chief operating officer.

He joins from Assurant, where as digital, CX and customer service director, he led the digital transformation programme for its European operation.

Before his time at Assurant, he spent three years as group operations director at Succession Group.

Barclays Private Bank

The company has strengthened its presence in Asia by making two senior appointments in its Singapore office.

Tom Road has been appointed deputy head for Singapore. Having worked for Barclays Private Bank in London for the past 13 years, covering UHNW and Global Family Offices, Road has relocated to Singapore to take up his new role.

Wengmun Loh has been appointed head of dealing and derivatives in Singapore. Wengmun has been with Barclays since 2008 and was most recently head of UK direct access for Barclays Private Bank in London.

In his new role, Wengmun will relocate to Singapore and is responsible for building up the capital markets and trading capability of Barclays Private Bank, Singapore.

Abrdn

The asset manager confirmed that its head of digital solutions, Paul Titterton, has left the business.

Titterton joined the provider in January 2022, and was responsible for developing the firm’s digital retirement advice proposition.

A spokesperson for Abrdn told International Adviser: ‘We can confirm that Paul has left the company, we would like to thank him for his contribution and wish him well for the future.”

NextWealth

The research firm has appointed Emma Napier as consulting director.

Napier as previously head of sales and proposition at Bravura and head of distribution at True Potential.

Vistra

Jonathan Ferrara has been named as managing director for the firm’s Channel Islands arm.

He has held senior roles at various global organisations, including Bank of America, UBS and most recently Sanne, where he was managing director for Channel Islands.

Irwin Mitchell

The law firm has added to its high net worth and international tax team in London with the appointment of partner Matthew Briggs.

He joins from boutique private client practice the Burnside Partnership and specialises in personal tax, estate and succession planning for UK and international individuals and families.

Clarion Wealth Planning

The advice firm has expanded its team with the appointment of Bradley Peet as an associate financial planner.

He has joined Clarion after more than three years at Carpenter Rees.

The MaPS data shows that in nearly half the cases, the service does not know the specific reason for the member attending the session. ‘Unknown’ was given as the reason in 44% of recorded cases over the past three months (April-June 2022).

Additionally, overseas investments remains a common cause of an amber flag being raised, resulting in many potentially low risk pension transfers being put on hold for this reason to the end of June 2022.

Due to the very broad way in which the rules are worded, some pension schemes are raising amber flags on overseas investments covering mainstream investments, such as funds from major asset managers that are investing globally. MaPS warned that the high proportion of ‘unknowns’ is likely to create a significant skew in relation to the numbers, so the real figure could be higher still.

Quilter added that MaPS does “not appear to be proactively improving the data they are collecting” as in the same FOI response the service confirmed they “do not enter into correspondence with members, schemes or providers about the reason for the amber flag”.

Table 1: MaPS data on reasons for reported amber flags

Source: Quilter

Guidance sessions

The pension transfer rules introduced in November 2021 require the trustees of a transferring pension to raise an amber flag, which pauses a pension transfer, if they find that there are overseas investments included in the receiving scheme or other relevant issues. Before the transfer can be authorised, the member involved must prove they have received scam guidance from the MaPS following the transfer being flagged.

Since the introduction of the new transfer rules, a total of 3,731 members have received scam guidance from the MaPS as a result of an amber flag being raised by a trustee (to June 2022).

Month on month, the number of amber flags raised have increased significantly, leaping from just 20 guidance sessions in December 2021 to 1,067 in June 2022. However, the rate of month-on-month growth appears to be slowing and was nearly level between May and June 2022.

Table 2: MaPS data on number of scam guidance sessions

Source: Quilter

‘Disconnect’

Jon Greer, head of retirement policy at Quilter said: “In the 12 months to 31 November 2021, the Money and Pensions Service took just 482 calls and webchats in relation to pensions scams. Comparatively, in the seven months that followed the introduction of the new pension rules, this number soared to 3,731.

“This highlights the real disconnect between the number of people whose pension transfers were potentially being targeted by a scam, versus the number of people who were able to identify this and reach out for help prior to the rule change.

“However, while it is positive to see such a noted increase in the number of people receiving scam guidance when it comes to their pension transfers – particularly where there is a genuine cause for concern – there remains a clear issue with transfers being halted where the trustees are finding an amber flag, but MaPS is not being made aware of the reason.

“The lack of information provided to MaPS in terms of the reason for the amber flag being raised is concerning. If the information is not logged, and particularly whether there was an actual risk of a scam, it will be difficult to assess where scams are focusing and may provide an inaccurate picture of the effectiveness of the regulation.

“What’s clear is that we need an improvement on the data collected to see the reasons for the member attending the scam session – no doubt this will help the session with the member, and secondly, we need to resolve the impasse that Trustees face in applying the letter of the law which is out of step with the policy intention.”

Regulatory action

This FOI comes several months aftert the Department for Work and Pensions (DWP) and The Pensions Regulator (TPR) stepped in to provide clarity around the pension transfer rules.

It followed accusations by platform PensionBee which named and shamed a number of “rogue” providers it claimed were using loopholes in the regulation to “block and delay consumers from moving their pensions”.

PensionBee chief executive Romi Savova explained that the providers were using a very broad interpretation of ‘incentives’ provided by the receiving scheme as a reason to halt a transfer. This included the firm’s £50 ($62, €58) refer-a-friend programme.