What is the Value of Advice?
With interest rates at an all-time low, global stock markets continuing to be volatile and rules and regulations around personal finance products becoming ever more complex, independent financial advice has never been more important.
According to research, less than one in five (18 per cent) of UK consumers has sought advice from an independent financial adviser (IFA).
When comparing the financial situations of consumers who have taken independent financial advice to those who haven’t, some remarkable differences become clear:
- Those who have received advice are much more likely to have life insurance, pension provisions and investment products than those who have not received advice.
- The current average pension pot for consumers who have been advised on their retirement planning is £74,554.30, nearly double that of those who have never taken financial advice.
- Those who have taken advice put nearly a third more a month into their pension plan.
- On investments, people with an adviser save for longer and contribute more, leading to an average investment value which is over £40,000 higher than the average for those who haven’t sought advice.
All of these findings suggest that taking independent financial advice has a vital part to play in the health of your finances and it can have a tangible positive effect on consumers’ financial security. In short those who have taken financial advice are more likely to have a financially secure retirement, have more in savings and have families that are protected should the worst happen.
Independent financial advice doesn’t just prove its worth through facts and figures. It also plays an important role in helping clients understand their personal financial situation and how it fits into the wider financial environment of the national and global economy.
For more information about how independent financial advice can help you please contact us.