The company’s study shows that nearly three-quarters (70 per cent) of retirees who sought financial advice did not have to make cutbacks on their lifestyle choices when they retired.

Conversely, nearly two-thirds (60 per cent) of unadvised respondents said that they had to make cut-backs when they started to draw a pension.

“Our research has highlighted the worrying fact that only a quarter of people are switched on to the significant benefits of seeking financial advice now in order to prepare for their old age,” said Simon Fraser, president of institutional business at Fidelity International.

“Whether or not you seek financial advice may ultimately affect the comfort and quality of your retirement,” he added.

Mr Fraser noted that the earlier people seek advice on their retirement, the better the returns will be. One pound invested at 25 is worth twice as much in retirement as the same pound invested at the age of 40, the company says.

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