Nearly one in four UK adults (23%) say they would never seek financial advice, even if it was free.
The findings appear in new research to coincide with the launch of Financial Planning Week 2024 which kicks off on Monday.
The research suggests widespread consumer avoidance of professional financial advice and significant numbers of consumers who say they do not want or cannot afford financial advice.
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A study from Canada Life and consultants AKG – ‘The State of Flux’ – reveals:
• Nearly half (45%) of UK adults have never seen a financial adviser
• Nearly one in four (23%) say they could not be persuaded to get financial advice no matter the circumstances and even if the advice was free
• 21% of those who are not engaged with financial advice say they do not believe they have enough wealth to warrant seeing an adviser
• More than a tenth (11%) of those who do not receive advice do not trust financial advisers and 9% are ‘afraid of pushy sales techniques’
Despite the antipathy, 12% says they have regretted not seeing an adviser and 35% are worried they do not have enough money to fund retirement.
Some 31% says they have underestimated the impact of inflation and 31% have lost money because they did not seek advice.
Tom Evans, managing director, retirement, at Canada Life, said: “Financial Planning Week marks an opportunity to discuss financial literacy and money management – and to address the advice gap. We are facing a pivotal moment where a significant proportion of UK adults say they aren’t willing to engage with financial advice and yet many share regrets later down the line for not doing so sooner.
“As an industry, we have a role to play in communicating the benefits of financial advice, and the value it has for consumers’ current and future financial success. Now is the time to be bold and challenge the current status quo.”
Financial Planning Week, the CISI-backed, consumer-focused annual consumer campaign to spread awareness of good Financial Planning, will launch this year on Monday and run until 28 January.
The event is traditionally held each year in October but was pushed back to mid-January, “as many consumers will be focusing on their finances after Christmas and considering end of year tax planning,” according to the CISI Financial Planning Forum Committee.
The CISI has asked the UK Financial Planning community to support the event by increasing awareness of the benefits of professionally-qualified Financial Planning.
The 2024 UK Financial Planning Week will focus on busting myths around Financial Planning and encouraging conversations about personal finances.
A major focus this year will be to convince consumers of the importance of finding a professional, qualified Financial Planner to help them take control of their finances.
The CISI’s find a Financial Planner Wayfinder website will be available at www.financialplanning.cisi.org.
The CISI wants the Financial Planning community to be involved by posting using the #FPWUK social media awareness campaign and sending in tips, tools or guides to FPWeek@cisi.org.
• Is your firm taking part in Financial Planning Week? Let us know what you are doing by emailing our newsdesk: newsdesk@portfoliopublishing.co.uk.
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