Some 24% of 2,000 survey respondents met a criteria in terms of income bracket, level of savings and total value of savings to benefit from financial advice but, of those, 38% had never used a financial adviser.
The survey suggestions millions of people who could afford a financial adviser have never sought financial advice despite evidence they would benefit from it.
Aegon has produced a new consumer guide to encourage more people to take financial advice after its findings revealed that many who could afford advice were declining to do so.
Research from Aegon found that individuals with a financial adviser reported “greater confidence” with money matters, a better relationship with money and peace of mind.
The firm added that while the financial benefits of advice were well documented the “emotional and planning benefits” were much less reported.
The study into consumer attitudes to financial advice discovered:
- Among those who have not sought advice, peace of mind is seen as the most compelling benefit (35%) of taking advice ahead of specific financial benefits like securing a comfortable retirement (33%)
- Three quarters (73%) of people with a financial adviser have clear financial and personal goals and know what they are saving for, compared to just 39% of those who have never used an adviser
- The more people access advice the more they value it. Of those who occasionally use an adviser, 7 in 10 say they were satisfied or very satisfied with the advice they received, but the number rises to more than 9 in 10 of people who receive ongoing advice.
Despite the benefits only 1 in 10 of the population has a continuing relationship with an adviser.
Aegon will be promoting its guide over the coming months: https://www.aegon.co.uk/advisers/advice-makes-sense.html.
The guide aims to overcome barriers people have to taking advice, such as not knowing how an adviser adds value and looks to spell out the different roles an adviser plays.
The guide outlines the role of the adviser as a ‘coach’ that encourages people to get started with Financial Planning, the ‘navigator’ that guides them through the ups and downs along the way and the ‘protector’ of their wealth who helps maximise their growth and ensures they save in a tax efficient way.
Ronnie Taylor, Aegon’s chief distribution officer, said: “Some people look at advice as a cost but it’s really an investment.
“A reluctance to spend money on financial advice and manage your financial affairs without professional advice could easily prove to be a false economy. While many may consider financial advice to be too expensive, our research shows that those who take it view the benefits as very significant.”
Research was carried out with 2000 consumers in July 2019.