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Flagship study shows a quarter missing out on advice despite need

Advice advisers eraserA quarter of UK adults might need financial advice, but have not taken any in the last twelve months, an FCA study has found.

Just three per cent of UK adults aged 35 to 44 have had regulated financial advice in the last year, the flagship survey of around 12,000 people shows. 21 per cent of the group have not had advice despite the fact they may have needed to.

While a greater proportion, eight per cent, of those aged between 45 and 54, sought regulated advice in the past year, an even higher number did not but might have needed to: 28 per cent.

Similarly, just over ten per cent of those aged 55 to 64 took advice, but more than a third may have missed out.

From the FCA’s Financial Lives Survey

The FCA also found that around a quarter of defined contribution pension holders did not know the value of their pot, and 18 per cent of those that had accessed it could not say whether they had taken an annuity, drawdown or another option.

The regulator notes that “there are signs that some of those who are very close to making their at‑retirement decisions are not seeking out information, guidance or advice.”

For example, 28 per cent of 55-64-year-old, the most likely group to need advice but to not have had it, do not know where to look for a financial adviser.

Just over half said they would not be willing to pay for advice at any price, and only a third trusted advisers to act in the best interests of clients.

23 per cent of all adults reported being approached by possible scammers offering services such as a free pension review or the ability to unlock pensions early.

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Comments

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  1. So what? Advice cannot be provided for £100 and anyone seeking a source of advice need only look in the Yellow Pages, Thomson Local or online.

    As for the issue of trust, more and more of our new clients (like those of many other established adviser practices) come from referrals from existing clients and professional connections.

    Has the (probably considerable) cost of this research been money well spent?

    Does the FCA have any ideas as to how its conclusions might be addressed?

    Does it not have many other considerable more important issues on which to spend our money and its time?

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