Value of Advice

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.  The report is based on research we commissioned looking at the state of the ‘advised’ nation versus the ‘non-advised’ nation and comparing the differences in their financial situation.

According to our research, less than one in five (18 per cent) of UK consumers has sought advice from an independent financial adviser (IFA), with retirement planning being the number one reason why people search for details of a financial adviser through unbiased.co.uk.

When comparing the financial situations of consumers who have taken independent financial advice to those who haven’t, some remarkable differences become clear:

  • The advised group, despite being relatively similar with regard to income, includes a much higher proportion of people with life insurance, pension provisions and investment products than the non-advised group.
  • The current average pension pot for consumers who have been advised on their retirement planning is £74,554.30, nearly double that of those not seeking 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 consumer finances and it can have a tangible positive effect on consumers’ financial security.

Independent financial advice doesn’t just prove its worth in the hard numbers.  It also plays an important role in helping consumers understand their personal financial situation and how it fits into the wider financial environment of the national and global economy.

With the advice industry in the midst of another shake-up and the Retail Distribution Review firmly in view, independent financial advice continues to be vitally important for consumers needing help with their personal finances.

Find an adviser near you, using our postcode search.

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