Research reveals what consumers expect to pay for advice
Many clients currently believe there is no cost for financial advice and would only be prepared to pay £155 for a comprehensive financial review, according to research from CoreData.
The research and consultancy firm polled 1,020 consumers to gauge their appetite towards paying fees for advice and how much they would be prepared to pay.
Of those polled, 44 per cent have never used a financial adviser. A further 29 per cent have used an adviser in the past but do not currently receive advice, while 27 per cent use advisers on a regular or occasional basis.
Out of the clients who see a financial adviser, four in ten do not believe there is a cost for the advice they receive.
The research shows that half of consumers polled who are not currently receiving financial advice on a regular basis would consider using an adviser, but would only be prepared to pay an average of £155 for a financial review.
A further 10 per cent of those who would consider taking financial advice would not be prepared to pay anything at all.
If charged on an hourly basis, consumers would be prepared to pay an average of £39 an hour for advice.
CoreData head of UK and Europe Craig Phillips says: “A key challenge for advisers is in gently articulating the cost of delivering a full financial plan. Clients need to appreciate advice is much more than just the face-to-face time with an adviser.”