The value of Financial Advice

Only four in 10 UK adults trust regulated financial advisers, according to the Financial Conduct Authority’s (FCA) Financial,  Lives Survey, published in June 2018.* This is despite 42% of the near 13,000 people who took part in the study admitting they are dissatisfied with their financial circumstances.  Only one in 20 have received regulated financial advice in the last 12 months related to investments, saving into a pension or retirement planning. Another quarter state they might need financial advice.

Many of us face a whole range of long-term financial decisions; from planning for retirement, investing for the future, to choosing the right mortgage for our circumstances. Speaking to an expert adviser could help you to make more informed decisions. Yet 34% don’t know where to start to look for an adviser.

Are you confident to make your own decisions?

This lack of trust in financial advice comes despite the fact the FCA also found we have low levels of confidence in making our own major financial decisions. Just 27% of UK adults feel they know enough about pensions to choose ones suitable for their circumstances, without consulting a financial adviser. 29% know enough about investments to make their own choices. Even with mortgages, only 39% know enough to decide a suitable product without an adviser.

Only 16% of us believe we are highly knowledgeable about financial matters. Making a poor financial decision could have significant ramifications. It could leave you worse off in the longrun, potentially prevent you from achieving your goals, or cause you to downgrade your lifestyle or expectations. If you don’t feel you know enough about the options in front of you, there could be a greater risk of getting it wrong.

Speaking to a professional

When it comes to servicing your car, you rely on a mechanic. If you’re feeling unwell, you trust a doctor to provide a qualified opinion. And when it comes to your personal finances, it can also pay off to speak to a relevant professional. An adviser can take the pressure and workload from you. They will take the time to understand your objectives and circumstances, to research and recommend suitable options for you to consider. They’ll ask important questions you might not have considered. Their in-depth knowledge of the products could help you to make more informed decisions. Even if you’re financially savvy, an adviser can offer the extra knowledge and insight you may need.

There is a fee to pay, which can be off-putting some people. But with the right advice, you could ultimately make better financial decisions that – in the long-run – more than offset the charges involved. July 2017 research by the International Longevity Centre shows that people who take financial advice are £40,000 better off on average compared to those who don’t.**  Ultimately, a financial adviser can leave you feeling more confident about the future. And that you have the right plans in place towards achieving your long-term ambitions.

*https://www.fca.org.uk/publication/research/financial-lives-consumersacross-uk.pdf

** http://www.ilcuk.org.uk/index.php/publications/publication_details/the_value_of_financial_advice

The value of your investment can go down as well as up and you may not get back the full amount invested. Investments do not include the same security of capital which is afforded with a deposit account.