New research from Standard Life’s Retirement Voice report reveals the significant impact financial advice can have on people’s finances and their financial wellbeing, with almost two in five (37%) advised individuals estimating they are £40,000 or more better off thanks to professional financial support.
Three in four (77%) people who receive financial advice believe their adviser has made them financially better off. One in eight (13%) estimate their financial adviser has helped to grow the total value of their pension, savings and investments by £30 – £40k, and 14% think advice has increased their finances by £20 - £30k.
Regular advice delivers rewards
Standard Life’s research also found that ongoing advice delivers several benefits compared to taking advice on a less regular basis. Among those who have an ongoing relationship with an adviser, over 8 in 10 (82%) say advice has improved their finances, compared to 7 in 10 of those who only speak to an adviser on an ad hoc basis (72%).
Furthermore, those who have frequent contact with an adviser are more likely to consider they are delivering value for money than those who take advice as and when they need it (84% vs. 79%). They’re also more inclined to believe that their standard of living is better because of their adviser’s services (74% vs. 65%).
Ongoing advice can also help to improve people’s financial wellbeing, with 77% indicating feeling confident they know their options for using their pension savings (vs. 73%). Among retirees, those who take ad hoc advice are twice as likely to worry that they’re making bad decisions with their retirement finances than those who are still in regular contact with their adviser (21% vs. 10%).
Warren Bright, Head of Intermediary Advised Distribution at Standard Life said: “In today’s tough economic climate saving for day-to-day expenses, never mind the future, can be difficult. Professional advice helps to deliver tangible benefits for those speaking to an adviser - not only in monetary terms, but also in levels of confidence and financial wellbeing.
“We know that those who have an ongoing relationship with an adviser are more likely to enjoy these benefits than those who take advice on an ad-hoc basis, or not at all. With significant structural changes to the advice framework pending, the introduction of targeted support and anticipated moved to address adequacy, the role of professional advisers in helping build the financial security and confidence of more UK savers has never been more important. Professional, personalised advice will continue to play an important role in helping people make smart financial decisions, feel more secure about their financial position and achieve their long-term goals.”
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