Almost half of UK life and pension customers are not prepared to pay for advice, according to Ernst & Young.
The findings are based on research with 1,000 life and pension customers in the UK as part of a global survey of 24,000 customers.
Asked how they would want to pay for advice from an adviser or intermediary, 45 per cent say they are not prepared to pay for advice. Nineteen per cent say they want to pay for advice through charges deducted from the policy, 12 per cent through either an up-front or ongoing fee, 11 per cent choose a combination of charges from the policy and fees while the remainder say they do not know.
When asked how their adviser is currently paid, 10 per cent say their adviser gives advice for free while 21 per cent do not know.
A quarter say their adviser is paid commission that is ded-ucted from their policy, 6 per cent say an up-front or ongoing fee and 4 per cent say it is a combination of fees and commission.
Thirty-three per cent do not use an adviser.
When researching a new product, 59 per cent say they would use an online comparison website while 36 per cent would seek out a financial adviser.
E&Y executive director of performance improvement Adam Walton says: “We definitely do not think this is the end of paid-for advice but there is massive education to be done to help customers navigate the new landscape.”
Jacksons Wealth Management managing director Pete Matthew says: “The majority of people will not pay for advice, so we have to communicate the value that advice adds.”