"They see that they have, to them, a significant pension pot but need advice and guidance about how this translates into an income in retirement."
Have I got enough?
"Will I have enough?" - that is a frequent question for Informed Choice's clients, according to Martin Bamford, managing director of Informed Choice.
"Clients often do not know what 'enough' means for them," says Mr Daems. He adds: "I see part of our job is working with them (and using cashflow) to model what this looks like practically. However there's not an easy answer to that particular question."
Mr Budd adds: "How much is enough?' is the key question. I've been asking that one for 20 years.
"I promote a ‘coaching first, then planning, then advice’ way of financial planning." By this he means that he asks clients to "work out what you want from life, then spend your money on that".
Mr Budd says: "Most advisers spend their time with clients seeking solutions, solving problems. The clients need space to work out what the problems are in the first place, and an adviser/planner trained in coaching skills will be best placed to help them."
Mr Long agrees and says many people also ask: "How do I know how much income I will need?"
The point is they don't know - nobody can - but it is important there is much better education and information to help people make better retirement decisions.
Mr McSweeney explains: "Too many people are using pension freedoms to make withdrawals or to remain invested in drawdown without taking the appropriate advice, and so without a full understanding of the risks they are taking."
Peter Glancy, head of policy development for Scottish Widows, adds: "We would ask about current incomings in comparison to expenditure. This helps people put their assets into a relevant context, and to have a realistic discussion about how much one can afford to spend each year."
What sort of retirement do you want?
Perhaps the above question is one that an adviser should ask the person seeking help. What does the individual have in mind when it comes to spending what they have accumulated in their workplace pension?
Mr Glancy states: "Many people will want the flexibility to spend different amounts in different years, perhaps taking a little in the early years to supplement part-time working, then a much larger amount for a few years, doing all the things they've always wanted to do, and then perhaps less again in older age, when people tend to be less active."
Mr Bamford says the question of long-term care funding also comes up when people are thinking about what sort of decumulation choices might work for them - again this is a cost that might crop up further into retirement, and should be considered as part of the 'have I got enough?' question.
