Only 3 per cent of consumers would be prepared to pay over £100 per hour for independent advice and half would not pay any fee, according to Aviva research.
An ICM poll of 2,053 consumers conducted for Aviva shows that 50 per cent of people would refuse to pay anything for independent advice and would rather not receive advice at all.
Seventeen per cent say they would be willing to pay less than £25 per hour. Less than 3 per cent say they would be prepared to pay anything over £100 per hour for independent advice.
Average rates for giving independent financial advice usually range from between £75 to £250 an hour.
Aviva director of distribution development Stephen Gay says the research shows that the nature and value of advice is not well understood or appreciated by customers.
He says: “The challenge for our industry is to explain and market the diverse range of services that comprise advice and their benefits to customers.
“It is not that customers will not pay for advice, it is just that they will not pay unless they perceive value.
“IFAs provide an excellent service to the public and those who will thrive after the RDR will be the ones that are best able to describe and
market their advice proposition.”
Facts & Figures managing director Simon Webster says: “This research demonstrates that many people will be ruled out of the advice market because the FSA is forcing the industry to go down a path that it does not want to go down.
“The issue is not that advisers will be in trouble because consumers will not pay fees because the good IFAs will be able to charge for their work. It is about consumers who will not be able to get advice and will be pushed into the hands of the banks.”