The poll reveals that just 38 per cent of respondents said they understood their retirement and investment options well, prompting a rise in those seeking independent financial advice.

The increased range of products has expanded even further with the relaxation of laws surrounding the sector, which took place on A-Day last month (6th April, 2006).

“To some extent it is understandable that people are baffled. The finance industry specialises in producing more and more products,” said Defaqto sales and marketing director, Neil Morgan.

“It is clear that many people do not understand these crucial financial products (pensions and investments), which are important in securing a comfortable retirement, funding day-to-day living and protecting ourselves and our families if the worst happens,” he continued.

Mr Morgan urged consumers to make use of the wide choice of independent financial advisers in the UK.

He claims that the Aequos Engage database, a new product from Defaqto, could help with this process by “empowering advisers to provide the best possible support to clients”.

To read more about pensions, click here.

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