Aifa director general Chris Cummings says he supports the review’s aim of ensuring more people have greater access to financial information and advice.
He says: “As a nation we face a falling savings rate and rising levels of personal debt. We must work together to combat this. Generic financial information can provide a first step for consumers to address these issues but we must ensure it is a first step towards more professional financial advice.”
Cummings says Aifa’s own research shows that access to professional advice for the UK’s 24 million households could see a national personal debt reduction of almost £30bn.
He says: “The research also estimated that within four years of low to medium income population groups receiving financial advice, and only one in ten acting on it, new contributions to medium term savings plans would increase by £1.5bn net.”