Almost three in five (59 per cent) people aged 50 to 79 have a lack of trust in financial services providers, research by LiveMore has revealed.
This distrust was found particularly prevalent among the higher end of the age group with 70-79 year olds displaying the highest level of mistrust, standing at 69 per cent.
LiveMore pointed out that these latest findings closely mirror those of a similar survey conducted by LiveMore in October 2022, which reported a trust shortfall of 58 per cent.
A gender disparity was discovered in the research with women found to be slightly more mistrusting than men.
It revealed that 61 per cent of women displayed mistrust towards financial services compared to 57 per cent of men.
Speaking on the findings, LiveMore CEO and founder, Leon Diamond, stated: “The industry needs to recognise that these aren’t just statistics, they’re individuals whose lives are being adversely affected.”
He added: “As we look to the future, it is crucial that the 59 per cent statistic falls sharply.
“We can achieve this if we all adhere to consumer duty guidelines and put the customer first.”
Adding to its research, LiveMore pointed to a critical review of lifetime mortgage sales from the Financial Conduct Authority, which found that the advice given in many cases did not meet the expected standards.
The regulatory body also identified 400 instances where promotions had to be amended or removed altogether.
Such findings “tarnish” the industry’s reputation and further erode consumer trust, according to LiveMore.
It added that consumer duty is at the “heart” of these issues and stressed the importance of full affordability assessment before making any mortgage decisions.
It explained that the effects of compound interest can make lifetime mortgage products very expensive, especially if held for many years.
The company added that, in many cases, if a standard mortgage is affordable, that is usually the best outcome for the customer.
tom.dunstan@ft.com
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