• 47% of Brits state their level of concern over their personal finances has increased in the last six months
• Savings and pensions top the list of personal financial concerns
• Long-term care now a concern for a quarter of over 55s
• As part of Financial Planning Week, unbiased.co.uk’s urges consumers to look for ‘independence’ when it comes to their financial planning needs

With ongoing worries about the UK and world economy, new statistics¹  from unbiased.co.uk, the professional advice website, show that almost half (47%) of the nation say they are now more concerned about their personal financial situation than just six months ago.

Savings tops the list of personal finance concerns, with two in five (39%) of Brits stating this, followed by pensions (29%) and long-term care (16%). Worries about long-term care provision troubles almost a quarter (24%) of over 55 year-olds, while mortgage arrangements worry 22% of 18-34 year-olds (compared to a national average of 14%).

Unbiased.co.uk’s statistics show that retirement planning consistently tops the list of triggers for people looking for an independent financial adviser on unbiased.co.uk’s ‘find an IFA’ search. Of the nearly 450,000 consumers searching for an IFA through unbiased.co.uk every year, 38% are looking for an IFA specialising in personal retirement planning, followed by 28% who are after investments and savings advice and 13% who are looking for an IFA specialising in mortgages.

Ahead of Financial Planning Week, beginning next Monday (21 November), unbiased.co.uk has put together a top five checklist for consumers, helping them to make sense of what financial advice options are available to them. 

1. To IFA or not to IFA?

If you are looking for financial advice, you currently have three options to choose from: an independent financial adviser, a multi tied adviser or a tied adviser. 

From January 2013, with the kick off of the Retail Distribution Review (RDR), financial advisers will be classified as Independent, Restricted, Simplified or Basic.

2. How to find an IFA

Unbiased.co.uk currently lists over 15,000 IFAs on its free and confidential online ‘find an IFA’ search.  You can select an IFA based on a number of criteria, ensuring that you are matched with the best adviser to suit your needs.  Factors you should consider when selecting an IFA include location; the sector of the market they specialise in; whether you prefer a male or female IFA, or whether you would like your IFA to focus on certain areas such as ethical investments.

You can now also access unbiased.co.uk’s ‘find an IFA’ search via your iPhone.  The application is free to download, and you can simply type in your chosen postcode to find an IFA close to where you live or work.  If you want to download the ‘find an IFA’ application, you can find it under both the ‘Finance’ and ‘Lifestyle’ categories of the Apple Application Store online.

3. What to ask when seeking independent financial advice

It’s a good idea to contact at least three advisers before selecting one and to find out as much information as you can.  Questions to ask include:

1. Ask what qualifications they hold (remember IFAs are likely to up skill with the approach of RDR)
2. Make sure the adviser knows your attitude to risk and takes a record of your financial background and what you want from life
3. Make sure the adviser explains to you how much the advice will cost you
4. Why any product or company they may recommend is suitable for you
5. Whether the IFA is to remain independent after January 2013 following RDR

4. Qualifications

You should have a look at your chosen adviser’s qualifications to ensure you are aware of their credentials in the area of advice you are looking for.  IFAs are qualified to provide ‘generic’ financial advice but they may also hold additional qualifications specific to a particular product area such as pensions, investments and mortgages.  

To help you make sense of IFA qualifications, unbiased.co.uk lists all qualifications as certificate or diploma level.

Certificate qualifications are broadly equivalent to A level standard and is currently the minimum level of qualification required to become a Financial Adviser,  

Diploma qualifications are set at a standard equivalent to elements of a degree.  Financial Advisers with diploma level qualifications demonstrate that they have studied to a higher level in specific areas of financial advice and products. All Independent Financial Advisers need to have reached Diploma level or QCF Level 4 due to the Retail Distribution Review. 

5. How to pay for this service

Currently, an independent adviser will offer you the choice of paying by fee or by commission.  A fee will either be charged at an hourly rate or as a total amount for the whole job but this must be agreed from the start.  Paying indirectly through commission means an amount will be deducted by the product provider from any financial products you may take out and paid to the IFA.  Tied and multi-tied advisers do not have to offer a fee option.

Post January 2013 with the introduction of RDR, advisory firm must draw up a clear pricing structure for its advice and services (products have no influence) and will not continue to use fee versus commission.

Karen Barrett, Chief Executive at unbiased.co.uk, comments: “Given the economic climate over the last few years, financial planning should be at the forefront of everyone’s minds. Careful planning could make a real difference to both your current financial situation and also securing your future.

“Mortgages, pensions and savings for children are just a few of the pressures and considerations facing consumers right now and therefore imperative for people to get as much information and help as possible to get on track.  Financial Planning Week is the perfect time to start and finding an independent financial adviser has never been easier - visit www.unbiased.co.uk  to carry out a free and confidential search to find an IFA”.