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Only 13% of consumers want to pay for ongoing advice

Just 13 per cent of consumers are interested in seeking out ongoing fee-based advice, according to research from JP Morgan Asset Management.

The research, published this week, looks at the appetite among UK consumers for fee-based advice.

JP Morgan based its findings on a survey of 2,028 individuals with a gross household income of over £50,000, having previously established that a gross household income of £55,000 is the tipping point where consumers become significantly more interested in taking advice.

It found that 13 per cent of respondents are likely to seek out an ongoing fee-based service while 40 per cent are prepared to pay for task-based advice services.

More than 80 per cent of those surveyed said they would seek professional advice to some degree while only 19 per cent wanted to transact on a purely non-advised basis.

The research found interest in using an adviser peaks among individuals with a household income of £150,000 to £250,000.

It also found clients would be most willing to pay a fee to an adviser who is proactive in managing ongoing portfolio adjustments and provides regular reports and early warnings of market volatility and financial events.

Evolve Financial Planning director Jason Witcombe says: “Financial planning is quite an intangible thing but once it is explained a monthly fee will not cost a great deal more than a project fee. Once clients understand the benefits of the service, they are more open-minded about paying for ongoing advice.”


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There is one comment at the moment, we would love to hear your opinion too.

  1. It depends what you call an ongoing fee. A monthly payment from the client’s bank account probably is difficult to sell, but a monthly fund-based deductible adviser charge is hardly any different from the present system of trail commission, so I don’t see why it should be a problem.

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