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Internet wins over IFAs for financial help

Only 8 per cent of Britons regularly seek advice from an IFA on retirement planning while 32 per cent turn to the internet for guidance, according to Safe Home Income Plans.

The equity release trade body questioned 1004 people and found 9 per cent had met with an IFA only once, 4 per cent had taken advice from a bank and 6 per cent had taken advice through their employer. 

Almost 40 per cent of people hope to maintain their current living standard into retirement while over 10 per cent expect to exceed it. Three quarters of those questioned intend to manage their retirement finances themselves, without seeking advice from an IFA.

Ship says most people plan to fund their retirement with some form of pension. Twenty-three per cent said they had a pension but it would not be enough for them to retire on and 35 per cent had no regular pension at all.

Fourteen per cent had never heard of equity release while 9 per cent of people wrongly identified it as a remortgage and 32 per cent thought it was a form of sale and rent-back.

Director general Andrea Rozario says: “It is interesting to note that although 73 per cent of Britons consider that they are responsible for their own retirement finances, so few are regularly consulting financial advisers to ensure that they are making the most of their money.

“The findings show that without consulting an IFA, consumers are likely to miss out of the full spectrum of retirement planning products.”



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There are 4 comments at the moment, we would love to hear your opinion too.

  1. So presumably IFAs need to learn more about how to make sure that consumers find their websites when looking online for information on personal finance?

    It would be interesting to hear what IFAs think about this and what they are doing to attract consumers to them and their websites.

    Philip Calvert

  2. Advice on the internet!

    Advice is a regulated activity. The internet only offers execution only sales unless of course you happen to be Hargreaves Lansdown who get away with advice by newsletter followed up by execution only when the client acts!

  3. I don’t think it’s from an advice perspective Simon. For example I know several clients’ who have used some very useful resources on the web, such as forums, where they’ve been able to speak to other people in a similar position regarding their retirement options and from there they have been recommended to an IFA, or indeed looked for an IFA themselves.

  4. Aha, Simon. Don’t forget good old Which?,quote from their website – “No advertising, no bias, no hidden agenda. Just expert advice from an independent source.” Definitely offering advice and independence! Funny thing is I couldn’t find any trace of them on te FSA register. I used to subscribe pre Financial Services days and then they recommended a ‘Best Buy’ as one of the funds offered by the DSF I was with at the time, even we knew it was not particularly good, at that point I cancelled my subscription fearing that they knew as little about washing machines as they did about financial services!

    Check out their advice on FIB, apparently it costs about the same as level term but doesn’t provide as much benefit and is therefore not as good value. Mmm…….

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