Less than 9% of savers received financial advice in the past year, FCA survey reveals
Only 8.6% of people received financial advice on investments, pensions or retirement planning in the previous 12 months.
The Financial Conduct Authority (FCA) has released its latest Financial Lives survey, highlighting significant financial challenges faced by UK adults.
The survey findings
The survey indicates that one in ten individuals have no cash savings, and an additional 21% possess less than £1,000, leaving many vulnerable to unexpected expenses.
The report also reveals that approximately 25% of UK adults are considered to have low financial resilience, characterised by missed payments, difficulty keeping up with commitments, or insufficient savings to manage financial difficulties.
Despite these challenges, the FCA notes improvements in access to banking services, with a decrease in the number of unbanked adults from 1.1 million in 2022 to 900,000 in 2024.
Additionally, digital exclusion has significantly declined, with only 2% of adults being digitally excluded in 2024, compared to 14% in 2017.
The survey also highlights concerns regarding retirement preparedness.
One-third of adults with defined contribution pensions have saved less than £10,000, and 12% are unaware of their pension's value.
Help for consumers to continue
In response to these findings, the FCA emphasises the importance of seeking financial support.
Sarah Pritchard, Executive Director of Consumers and Competition at the FCA said:
"Our data shows that finances are stretched for many - with some unable to save for a rainy day. And we know that some do not have the confidence to invest. But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives."
Among the 1.7 million people who utilised debt advice or management services in the previous year, 61% reported improved debt manageability.
The FCA continues to advocate for enhanced access to financial guidance and advice, aiming to bolster financial resilience across the UK population.
Initiatives to help consumers outlined by the FCA include:
New rules for a new form of support so that consumers can be guided on how to make the most of their pensions and to invest with greater confidence, without taking costly personalised financial advice.
Helping consumers to make better-informed investment decisions through its InvestSmart campaign.
Supporting the government to develop a national plan for financial inclusion.
Continuing to set high standards across financial services through the implementation of the Consumer Duty.
Driving better value for money in workplace pension schemes.
Scrutinising the insurance sector to make sure people get fair value, for instance on pure protection and premium finance.
The importance of financial advice
As the FCA’s findings make clear, financial resilience remains a challenge for many across the UK, whether it’s saving for the future, managing debt, or planning for retirement.
While the data shows encouraging signs of progress, it also highlights the value of seeking guidance when it comes to making informed financial decisions.
Speaking with a regulated financial adviser can help individuals build greater confidence, improve money management, and make the most of their financial opportunities, whatever their starting point.
We’ll find a professional perfectly matched to your needs. Getting started is easy, fast and free.
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