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Just one in 10 people seeking financial advice

Bright purple pink party balloon emerging from a crowd of dark, gray anonymous balloons. Being special, standing out from the crowd, focusing on own individuality. Front view, looking up. Copy space on dark side of image, gray background.Just 10 per cent of people are seeking financial advice, according to Aegon research.

However, there is some positive news as this is a 2 percentage point increase from when the same survey was conducted nearly two years ago.

Aegon polled more than 900 people in May this year and found 47 per cent make financial decisions on their own and 40 per cent make financial decisions with their partner or spouse.

When the provider surveyed more than 1,000 people in October 2016, just 8 per cent sought financial advice.

Aegon found that nearly a third of those going into drawdown did not see a financial adviser.

Aegon pension director Steven Cameron says the increase in people seeking advice is encouraging but, overall, take-up remains “worryingly low”.

Cameron says: “Since last year, the numbers accessing their pensions flexibly through pension freedoms has continued to grow. Making the right decision on your retirement finances is hugely important and really should be done only with the help of a professional adviser.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. I’m not sure what the regulator, industry or so called consumer champions expect to occur when you have the perfect storm constituting the following.

    1.) Normal people who have little if any knowledge of pensions, or little understanding of why advice may be critical.
    2.) A huge regulatory burden, which costs vast amounts of money and will always be paid for by the end user. Coupled with a regulator that never seems to consider the costs of it’s requirement vs the benefits.
    3.) A system that seems to think that no client is ever responsible for their own decisions. Add to that no complaints backstop, a FOS that frequently doesn’t even follow the regulators guidance and frequently appears to just make it up as it goes along.
    4.) A regulator and ombudsman that appear to be accountable to nobody except themselves.

    Advice is expensive and until the regulator and FOS take a different viewpoint and can’t just keep changing the rules retrospectively this will only get worse.

  2. Christopher Pitt 22nd May 2018 at 11:25 am

    Interesting findings, and not dissimilar to others that I’ve seen recently. Clearly the industry is doing something right to attract the 10% of consumers that do take advice but I can’t believe that all of the other 90% don’t want any help at all! So maybe it’s what we’re offering and how we are offering it that fails to attract them?

  3. Richard Taylor 22nd May 2018 at 12:12 pm

    Just a couple of statistics from the FAMR Report to put this in context:
    45% of people have less than £5,000 in savings;
    47% o people earn less than £30,000 a year.

  4. Would be interesting to know if the survey differentiated between those who saw financial advice in terms of debt counselling or investment/pension planning, as it is a worthless piece of information if it didn’t!

    The former are maybe not going to want to pay for advice as they will not perceive the value or simply cannot afford it.

  5. David Cathcart 22nd May 2018 at 10:59 pm

    Well look on the bright side if 90% of people think they can do it themselves then that’s 90% of the population that can’t claim they were mis-sold, so that keeps our levies down – sorry then I woke up, it was all a dream after all

  6. Why is this a surprise, or even news? UK working population is about 26 million add about 10 million retirees. 90% are either in deep debt or have no facility to save. This leaves about 3.5 to 4 million who take advice. I guess that’s plenty for the financial advice community.

    There are about 24,000 advisers of all types. (IFAs and others). Using the 3.5 million figure that leaves about 145 clients per adviser. So what’s the problem? Even if you account for those doing DIY (and who will no doubt eventually need an adviser to sort out their mess) there are still plenty to go round).

    For an industry that is supposed to be highly numerate it amazes me at the paucity of statistical analysis.

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