Aegon has launched a guide to explain the value of advice to consumers as research showed almost 5m individuals who could afford financial advice have not taken it.
The findings from Aegon, published today (November 18), showed 73 per cent of those with a financial adviser had clear financial and personal goals compared with just 39 per cent of those who had never used an IFA.
On top of this the survey showed the more people accessed advice, the more they valued it.
Of those who occasionally used an adviser, seven out of 10 were satisfied with the advice they received but the number rose to more than nine out of 10 for people who received ongoing advice.
Many of those who had taken advice said the greatest benefit was the peace of mind created by being advised by an expert (55 per cent), followed by the fact the advice was based on individual circumstances (54 per cent).
Those who had never used an adviser also thought peace of mind was the most compelling benefit of taking advice (35 per cent) while a third were enticed by specific financial benefits, like securing a comfortable retirement.
Aegon stated 24 per cent of the 2,000 people polled in July met a criteria in terms of income bracket and level of savings to be able to “comfortably afford” advice, but that 38 per cent of that bracket — estimated to represent 5m people — had not sought it.
Ronnie Taylor, Aegon’s chief distribution officer, said: “Navigating life’s big financial decisions to make the most of your money is hugely important and takes a lot of careful planning and consideration. Some people look at advice as a cost, but it’s really an investment.
“A reluctance to spend money on financial advice and manage your financial affairs without professional advice could easily prove to be a false economy.
"While many may consider financial advice to be too expensive, our research shows that those who take it view the benefits as very significant.”
In response to the survey Aegon launched Advice Makes Sense, a guide which aims to encourage people to consider financial advice.
The guide, which Aegon will promote to consumers over the coming months, hopes to demonstrate how financial advice “makes sense” by outlining the role of the adviser, the support they provide and reinforcing the value they add.
Most of all it aims to give individuals the confidence to take the first steps in looking after their individual planning needs, according to Aegon.
It also explains the adviser role as a “coach” that encourages people to get started with financial planning, the “navigator” who guides them through ups and downs, and the “protector” of wealth in terms of tax and maximising growth.
imogen.tew@ft.com
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