‘Worrying gap’ in financial advice for over-50s

The Citizens Advice Bureau (CAB) has warned of a “worrying gap” in the availability of affordable financial advice for people approaching retirement.

People over 50 are often asset rich, but cash poor, and cannot afford to pay for the financial advice they need, the CAB said.

Many people in this age group have complex questions about mortgages, pensions, and equity release, but don’t have the money to hire a professional financial adviser.

CAB issued the warning following a recent initiative in which it offered free, impartial financial advice to clients.

MoneyPlan offered the services of Independent Financial Advisers (IFAs) to CAB clients.

The majority of people who sought help from the scheme were over 50 and owned their own home, but had a low monthly income.

Teresa Perchard, Citizens Advice head of policy, said: “The findings of MoneyPlan show a worrying gap in the availability of financial advice for people who can’t afford to pay for it or know where to start to find it.

“There is nowhere impartial for them to turn at the moment with these complex inquiries - this is something which needs to be addressed.”

Of the 1,100 CAB clients who visited an IFA under the MoneyPlan pilot, 85% said the appointment reduced their stress levels and improved their peace of mind.

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