Financial Advice – People who receive this are £40K better off

Financial Advice – People who receive this are £40K better off

Posted on: 18-09-2017
Financial Advice – People who receive this are £40K better off

A recent study has revealed that people who seek financial advice from an independent financial adviser (IFA) are on average £40,000 better off than those who don’t.

The Research

The research has come from leading think-tank the International Longevity Centre. They stated that both the ‘affluent’ group – wealthier people more likely to own their own homes and have degree-level education – and the ‘just getting by’ group – less wealthy people likely to be living in rented accommodation and have lower levels of education – benefit similarly from the financial advice they seek.

‘Affluent but advised’ customers on average had 17% (£12,363) more liquid assets than those not seeking advice, with an additional 16% (£30,882) in pension wealth on top of this making a total uplift of £43,425. ‘Just getting by but advised’ people were around £39,895 better off than their unadvised counterparts, with 39% (£14,036) more liquid assets and a boost of 21% (£25,859) to their pensions.

The figures were calculated through analysis of UK-wide individual and household asset data during the period from 2001 to 2007. This was compared to the same data taken between 2012 and 2014. As well as finding that those seeking advice were better off than those not seeking it, the research also concluded that both the more affluent and the less well off groups also benefited from greater savings and equity investment levels thanks to taking financial advice.

Trust is Key

The research also found that nine out of ten of those asked as part of the research were happy with the advice they received. Trust and financial capability were the two main factors which dictated whether people consulted with an IFA. The report, entitled, ‘The Value of Financial Advice’, also recommends that employers should support their workforce through auto-enrolment with advice and a default level of guidance when savers want to access their pension pots.

Click here for our contacts page.

Back to our articles & blog

Feedback from our clients

Paul provided impartial, honest and considered advice after listening and considering my needs. His advice proved to be accurate, but most importantly he responded when he said he would and did what he said he would do! This is a basic thing – but not often carried out! I would have no hesitation in recommending Paul in the future.

Stewart

When, like me, your investment knowledge is limited the first things you want from an IFA is someone whose honesty, experience and advice you feel you can trust. If after that you get to like them as a person who shares similar values with you, as I have and do, then the association should prove to be fruitful. I recommended Paul to both my sons when they needed mortgage advice and would not hesitate to recommend him to others.

Bernard

Paul is very easy to talk to,most helpful and always ready to explain fully and queries. I have always been more than pleaseed with his service to me.

Edith

Paul has proved to be approachable, responsive and willing to go the extra mile. These are difficult times to find a decent return on savings and investments and my final judgement of Paul will be based on the return we receive over a period of 3 to 5 years. From my dealings with Paul I have formed a positive view of his ability and I would be happy to recommend him to others. His patience and tolerance of my many uninformed questions has been greatly appreciated.

Don

Paul has been our financial adviser for many years and has helped us with general investments and pension provision. We have always found him to be approachable, trustworthy and reliable. He understands our attitude to risk and our need to be cautious investors and has explained thoroughly and in simple terms any possible changes that might affect us. He keeps us regularly updated with our investments and is always available to give us advice on any other financial problems which may occur. We would not hesitate to recommend him to others.

Eddy

Paul was recommended to me by a colleague, i am always very guarded when speaking with professional finance people but Paul was very different from the usual, he was extremely helpful, he listened to my needs and offered me lots of different options, he explained everything very thoroughly and always conducted himself very professionally.I trusted him 100% with my financial needs and his advice has put me in a very comfortable position.I have since recommended him to other members of my family and a lot of my friends/business colleagues.I would thoroughly recommend him for all your financial planning needs.

Patrick O’Callaghan
Review from Verified ClientVouchedfor - Verified Client