Customers who take financial advice can on average be £40,000 better off than those that do not receive advice, an independent report by the International Longevity Centre has shown.
The report used data across a range of different individual and household assets in Great Britain between 2001-2007 and assesses the impact of financial advice on two groups. People who are ‘affluent’ and people who are ‘just getting by’.
The ‘affluent’ group was more likely to have a degree, be in a relationship and a homeowner. Compared to the ‘just getting by’ group, who were more likely to have lower levels of educational attainment, with no partner and renting their home. Below are some of the findings from the report.
When the ‘affluent’ group took financial advice they accumulated on average:
• £12,363 (17%) more in liquid financial assets.
• £30,882 (16%) more in pension wealth.
• A total of £43,245 more than those who were also deemed to still be affluent but didn’t receive any financial advice.
Those within the ‘just getting by’ group who received advice, accumulated on average:
• £14,036 (39%) more in liquid financial assets.
• £25,859 (29%) more in pension wealth.
• A total of £39,895 more than those who were also in this group and didn’t receive financial advice.
This research shows what qualified financial advisers have always said, that when people take advice on an ongoing basis they are overwhelming satisfied and benefit as a result.
The full report is available from http://www.ilcuk.org.uk/index.php/publications/publication_details/the_value_of_financial_advice