When asked to select factors that discouraged them from taking advice, 37% of those surveyed said that ‘the cost of getting advice’ was an issue that put them off seeing a financial adviser**.
Asked what they would be prepared to pay for advice, 44% said that they would not be prepared to pay a fee. A third (33%) said they were unsure and 15% said they would pay only up to £250.
The Government this week launched a consultation on consumer access to financial advice, with a special focus on helping those with ‘limited wealth.’
Published by the FCA and HM Treasury, the consultation paper says the Government will examine ‘areas where consumer demand is low because the long-term benefits of advice may not be fully appreciated’. It will also look at the reasons why advice is sometimes ‘perceived to be poor value for money…even if such advice could be of real benefit.’
According to the data collected through YouGov, the other significant barriers discouraging people from taking advice are:
- One-third (33%) said they did not believe they had enough wealth for an adviser to help them.
- 31% feared ‘paying for something they didn’t need’.
- 30% said they believed advisers may be biased toward some products
- 19% were unsure which advisers to trust
- 15% weren’t convinced an adviser could offer value
- 16% said they thought it was hard to know which adviser would give them what they need
Only 1 in 5 (20%) said they saw no barriers preventing them from speaking to an adviser.
Intrinsic chief executive Richard Freeman says:
“The data shows we face a challenge demonstrating the value of advice to consumers. It is important for Government and the financial adviser community to work closely together to ensure more people can access the benefits of professional financial advice.
“Advice allows people to plan a sustainable retirement income strategy and protect their family if they become unwell or unable to support them. To many people, paying for advice can feel like a fee to shelter themselves from tomorrow’s problems. As a result, some put-off taking advice or choose not to take it altogether.
“The Financial Advice Market Review is an opportunity to address misconceptions and help people access the advice they need. If successful, there is an opportunity to make UK households more financially secure and more prosperous by doing so.”
*Data collected by YouGov in July 2015 from 1400 UK adults age over 35.
**Participants asked to respond to the following question: ‘What, if anything, discourages you from seeing an adviser?’