More than one in four (27%) of over 55-year-olds with a pension plan to make withdrawals following pension freedoms introduced in April, but half will not pay for financial advice, according to a consumer website.
In a survey of 669 over 55-year-olds with a pension, money.co.uk said of those planning withdrawals, one in five (19%) were willing to pay for financial advice, 49% were not and 32% were unsure.
Of those unwilling to pay for advice, 59% did not feel they needed it and 28% felt it was "simply a waste of money". Some 27% could not afford the service while 15% wanted to access their pension quickly and did not want the "hassle" of taking advice. However, one in five would take the free 30-minute session provided by Pension Wise, the government's pension guidance service.
The website said the average amount people would be willing to pay for advice was £253, while more than half (60%) would pay £200 or less. However, it said the average cost of an initial financial review was around £500.
"With the average cost of an initial financial review almost double this at around £500, many of these people might be in for a shock when they research the costings and subsequently change their minds," it said.
Money.co.uk said decent financial advice was likely to be "money well spent", particularly when it comes to tax. Some 38% of those making withdrawals said they fully understood the tax implication of making withdrawals.
Hannah Maundrell, editor-in-chief at money.co.uk, said: "Our concern is that people will rush into a decision without fully researching the long-term impact or costings, simply because they need cash fast. After all, many people making a withdrawal from their pension are doing so to keep up with day to day living expenses."
