Research found that 75% of people across the UK have not taken financial advice in the last five years despite inflationary pressure.
2000 UK consumers were surveyed in the research paper ‘Future of Advice – State of Flux’ by UK investment manager Charles Stanley and AKG, a financial services consultancy.
About 55% of respondents admitted they have never seen a financial adviser. Additionally, about 20% admitted that whilst they have seen one in the past, they have not spoken to an adviser in the last five years.
About 12% of respondents admitted they “regret” not taking financial advice on a major financial decision, such as retirement planning. They cited mainly two reasons – underestimating the impact of inflation (31%) and feeling they did not have enough money to afford a retirement of their choice (35%).
Other reasons included losing money (27%), buying the wrong product (25%), or not buying the appropriate product (21%) due to not taking professional advice.
The research found that, in hindsight, this subset of investors would have sought advice on savings and investing (35%), pensions (32%) and general financial planning (31%).
The research focussed on the advice market in the UK from the consumer and adviser perspective.
Sean Osborne, group head of sales at Charles Stanley, commented: “Now more than ever it is vital that the industry continues to work towards effectively articulating the value that financial advice offers in times of change and disruption, demonstrated by the regret that some already have.
At a time when many major asset classes, including equity and bond markets, have taken a beating, many are wondering where to turn to get inflation beating returns and shield cash for the long-term, such as pensions.”
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