Working with a financial adviser can help you retire earlier

Support from a financial adviser or wealth manager is helping clients to retire earlier with nearly half saying they will be able to stop work quicker than if they had not had help, new research* from wealth manager Investec Wealth & Investment (UK) shows.

The study by Investec Wealth & Investment (UK), part of Rathbones Group, highlights how help with financial planning and being better informed about their options on pensions and investments is enabling clients of financial advisers to take more control of their retirement decision.

Investec Wealth & Investment (UK) surveyed retail investors with stock market investments including pensions. The results show that 45% believe they will retire earlier. Nearly half (48%)  of clients of financial advisers think they will be able to retire by at least 60 years old.   

More than one in seven (15%) of those expecting to retire earlier say they will stop up to two years earlier, while 38% believe support from an adviser will help them to retire between two and four years quicker than if they had not worked with an adviser. Around 16% say they will retire five or more years earlier.

Investec Wealth & Investment’s research revealed a strong preference among clients for face-to-face advice although one in five (20%) of those questioned said they relied purely on digital advice. More than double (42%) say their advice is mainly face-to-face with 38% saying it’s a combination of face-to-face and digital.

Around two-thirds (67%) say it is important to meet a financial adviser face-to-face to discuss key life stage milestones and the financial implications of these, while 90% of those who see advisers face-to-face rate the service as excellent or good.

That is slightly better than the 83% who rate their digital-only financial advice service as excellent or good, the study shows.

Nick Vaill, Senior Investment Director at Investec Wealth & Investment (UK), said: “Advisers and wealth managers can deliver genuinely life-changing results for clients by enabling them to retire earlier than they would have done if they had not sought advice. Clients believe they are better informed about financial planning and on top of their retirement options which is helping them to decide to retire earlier than if they had not had any help.

“A fundamental part of that is that clients still overwhelmingly prefer having at least the option of face-to-face advice. Digital services are clearly part of the equation and can deliver good results, but there is overwhelming strong support for face-to-face interaction.”

Investec Wealth & Investment offers an award-winning, bespoke discretionary managed investment service which is highly flexible and built around advisers’ client individual preferences and specific investment goals. It can also be applied to almost any investment structure, including joint or sole accounts, ISAs, pension and trust assets.

Once the adviser has agreed the most suitable mandate with their client, their portfolio will be actively managed on a discretionary basis. This enables advisers to leave the day-to-day decision-making to Investec and allows Investec to respond quickly to market changes or capitalise on opportunities that are in the best interest of the adviser’s client.

Investec Wealth & Investment (UK) offers a number of specialist services within its Bespoke Discretionary Fund Management. This includes the AIM Portfolio IHT Plan, which can reduce advisers’ clients’ inheritance tax liability on assets passed onto the next generation and also aims to deliver outstanding long-term performance as well as a Structured Product Service, which gives advisers’ clients the security of a set return over a defined period with a choice of two structured portfolios which have the potential for positive returns in rising, flat or falling markets. 

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Notes to Editors

* Investec Wealth & Investment commissioned independent research agency Viewsbank to interview 1,065 UK adults aged 18-plus including 568 who have stock market investments between January 

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About Investec Wealth & Investment (UK)

As one of the UK’s leading wealth management firms, we are trusted with managing £40.7 billion (as at 31 March 2023) of our clients’ money. Our wealth teams work hard at providing Out of the Ordinary levels of service to our clients and with an investment heritage dating back to 1827, we’re built for the long term.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN. Member firm of the London Stock Exchange.