Less than two in five Britons have sought financial advice at any point in their lives.
A new survey of over 2,000 UK adults has revealed a strong distrust of financial advisers.
- Only 38% of UK adults have sought financial advice at any point in their lives.
- The majority (57%) do not trust financial advisers, for example:
- 26% have felt pressured by an adviser into purchasing a financial product they did not understand.
- 13% have lost money after following the recommendations of a financial adviser within the past year.
- 75% believe financial advice is too expensive.
Less than two in five UK adults have sought independent financial advice at any point in their lives, new research from My Pension Expert has revealed.
The retirement finance specialist surveyed over 2,000 UK adults. It found that the majority (57%) do not trust independent financial advisers (IFAs) – this rises to 65% among those aged 55 and over.
Indeed, over a quarter (26%) say they have previously been pressured by an adviser into purchasing a financial product without fully understanding what it was, while 13% have lost money having followed the recommendations of an adviser within the past year.
Three-quarters (75%) of Britons also believe that independent financial advice is too expensive.
Resultantly, just 38% of UK adults have sought independent financial advice at some point in their lives. Instead, 65% said they prefer to use free online advice, while 76% feel confident enough to make their own financial decisions.
My Pension Expert’s research also revealed that an overwhelming majority (78%) of people would be more inclined to seek advice from IFAs if harsher punishments were introduced for advisers engaging in unethical practices. A similar number (76%) also called for greater transparency around how advisers calculate their fees.
Andrew Megson, executive chairman of My Pension Expert, said: ‘The lack of trust in independent financial advisers is alarming – it is a wake-up call that the financial services industry cannot afford to ignore.
‘Financial advice is not all smoke and mirrors. It genuinely helps people to make informed decisions about their financial strategies, from savings and investments to life goals and retirement. However, poor past experiences, heavy-handed sales tactics, complicated fee structures, and unnecessary jargon are all making people turn their backs on IFAs.
‘The industry must act to change the public perception of financial advice. IFAs must be more transparent, use plain language and any untoward practices have to be punished. Otherwise, Britons will only become more reluctant to seek financial advice and, in the current economically volatile climate, this could prove disastrous for people’s finances.’
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