The research conducted by YouGov for Quilter, asked respondents what three things they would do if they were to receive £500,000 tomorrow. Just over a quarter said they would speak to a financial adviser. This was consistent across all age groups.
Of those surveyed who already use a financial adviser 58% would consult them. Only 19% of those who had never used a financial adviser before would speak to one.
Quilter said the research shows the UK advice sector needs to build a better awareness of the value of advice.
Ian Browne, retirement planning expert at Quilter, said: “These figures make for worrying reading. It is a warning flare to the advice market that we all need to do a much better job of articulating what a financial adviser is for, how they can help and the value they can offer.
“In many respects the industry relies on life events, such as receiving a windfall like an inheritance, as an impetus to seek advice. However, this reveals that route is not as effective as we’d hope. And it is vital that people do seek financial advice. We know that those that win the lottery or a top premium bond prize are given an advice referral, but that isn’t the case with things like inheritance.
“Raising this awareness can be in part resolved by ensuring current clients and their families are aware of the services that you can offer and the various events that advice can help with. If someone were to inherit £500,000 then they could have a lot of tax complications they need to consider and with so many thinking of buying a property they need to think carefully about why that is and what that property is for. If it is a second property for investment that may not be their best option.
“On top of this the image of our profession is not as strong as it should be. While it is absolutely vital that clients are wary of those who don’t deserve their trust we need to ensure that advisers are viewed as go-to experts.”
According to the survey, 57% of Britons would use the money to buy a property. Investing and saving was low on the list of ways they would use the money, with 28% saying they would invest, 27% saying they would place money in a savings account, and 15% saying they would put money into a Cash ISA.
The research was commissioned by Quilter and undertaken by YouGov. Total number of those surveyed was 1,544 UK adults, comprised of 529 Baby Boomers, 501 Generation Xers and 514 Millennials. The research was undertaken online between 7 July 2020 and 8 July 2020.