Research by retirement income specialists MGM Advantage reveals that of Britain's largest 20 cities, Cardiff is the cheapest place to retire.

Based on analysis of household expenditure and average life expectancy data from the Office for National Statistics, the company estimates that someone retiring this year could need an average annual household income of £25,916.27 for the duration of their retirement if they lived in Cardiff – £8,939 less than London.  

The main reason for this difference is the fact that the research shows the average cost of living in London is 18.49% higher than for the country as a whole, whereas Wales is 11.53% below.

Of the major cities in the UK, Hull and Bradford were the next cheapest. Southampton and Belfast were the next most expensive after London.

As well as the large amount of money people need in retirement, many professional advisers are warning that retirement income levels are falling. This is mainly due to people living longer and regulatory changes.

It's estimated that in the next five to ten years, £135 billion of pension funds will mature, and people will need to be careful with their choices in order to maximise retirement income. 
 
Pensions advice from qualified and independent professionals is crucial, but with so many financial advisers to choose from, what should people look for?
 
Access Legal from Shoosmiths works closely with firms we've vetted and who we're confident can give people the advice they need. 

The Financial Services Authority (FSA) recently carried out a review of the independent financial advice market, concluding that advice is often biased by commission payments to the advisers for the sale of products, and that there is a lack of professional qualification.

With this in mind, Access Legal from Shoosmiths recommends starting with the following questions:

• Is the firm already fully compliant with the rules of the FSA's Retail Distribution Review (RDR), coming into force in 2012?
• Is the firm completely independent?
• Does the firm work on a 'billable time' basis for planning advice, or rely on the sale of products/investments in order to get paid?

The answer to all of them should be yes.

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