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Independent financial advice key to retirement security

says MGM Advantage’s Retirement Nation
03-06-2008

• Britain’s pensioners are twice as likely to have to downsizeif they’ve never seen an IFA
• ‘Painful regrets’ in retirement are nearly three times more likelywithout advice from an IFA
• Pensioners are four times as likely to be forced back to workif they’ve never seen an IFA

A wide-ranging new survey on Britain’s retirement prospects comes to the remarkable conclusion that, whatever your circumstances, you will be better off if you consult an Independent Financial Adviser (IFA) – even if you have no savings. The research commissioned by MGM Advantage, the retirement income specialist, is an exclusive inter-generational study of more than 3,000 Britons, surveyed by age, gender, region and key city, marital status, health status and exposure to independent financial advice.

MGM’s Retirement Nation survey, carried out by Opinion Matters, contrasts Britain’s preparation levels for retirement as well as their hopes and dreams for the golden years. The survey finds a clear link throughout the research between using an IFA and increased wellbeing – yet more than one in two Britons have never used or sought independent financial advice.  A minority of people in Britain, just 14 percent of those surveyed, have sought specific independent financial advice about their retirement. This 14 percent are now reaping the benefits financially and in their quality of life.

Retired people are twice as likely to be forced to downsize if they have never sought independent financial advice, and four times more likely to return to the workforce in order to make ends meet. Just three percent of retired people who have used an IFA expressed ‘painful regrets’ about their retirement, compared to eight percent who have not used an IFA.  The survey found retirement preparation levels to be lowest in Wales.  While around the nation, Sheffield, Brighton, Cardiff and Plymouth are all so-called ‘hotspots of low preparation’, defined as being where more than 50 percent of the pre-retired population say they’re not prepared at all.

Chris Evans, Chief Executive of MGM Advantage said: “Our nationwide research suggests that in many ways, an IFA is better than a life coach.  It is a startling acknowledgment of the contribution financial intermediaries have made over the past 25 years to Britain’s quality of life in retirement. We now know for certain that there’s a direct link between financial security in retirement and seeking financial advice, even if you don’t have a substantial nest egg. This is particularly encouraging for people who are convinced that they have put too little aside or that it’s too late to start saving.”

MGM Advantage, formerly known as MGM Assurance, re-launched this week as a specialist in the retirement income market.

-ENDS-

NOTES TO EDITORS

A full copy of MGM’s Retirement Nation report is available from MGM Advantage’s website, mgmadvantage.com

About MGM Advantage:  MGM Advantage is a new name in the UK retirement income market. Formerly known as MGM Assurance, the company repositioned itself as MGM Advantage in June 2008, when it launched a wholly-owned business unit called MGM Advantage Designs for Retirement to focus on annuity sales.  MGM has been registered longer than any other company in the UK.  It is a mutual society owned by its with profit policyholders, and manages assets in excess of £1.6 billion. MGM Advantage’s commitment to customer satisfaction is backed up by a customer charter, which promises high quality service and ease of mind.

MGM Advantage distributes its products through independent financial advisers (IFAs) across the UK.

MGM Advantage Designs for Retirement, MGM Advantage and the MGM Assurance logos are Trade Marks of Marine and General Mutual Life Assurance Society.

For further information contact:

Clea Bourne/Will Brewster    Tel: 020 7886 8440
Flagship Consulting
clea.bourne@flagshipconsulting.co.uk