The Axa Avenue experiment has proved the value of financial advice, with IFA Saran Allot-Davey saving 10 families 50,000 over the course of a year.
Heron House Financial Management managing director Allot-Davey took part in the social experiment which was sponsored by Axa and she was able to reduce the debt of 10 families by 23 per cent and to increase their savings by 41 per cent.
The control group of 10 families that did not receive any advice saw a 3 per cent reduction in their net wealth over the course of the year.
But despite Allot-Davey improving their financial situations, only three of the 10 households said they would pay for advice from an IFA, saying it was too expensive without guaranteed returns.
Allot-Davey says: “The majority have set up some good habits for the future and have made significant changes in the short term but I have doubts about whether these habits will continue in the medium term without someone watching over them.”
Axa head of pensions and savings policy Steve Folkard says: “Our research shows that people do not see their savings pot grow until they spend around an hour a month planning and reviewing their money issues. Worryingly, a third of all UK adults do not review their finances at all.”