Research suggests people who receive financial advice could end up £40,000 change ones mind off
Those who received financial advice between 2001 and 2007 had stocked significantly more in financial assets and pension wealth than their unadvised alike peers by 2012 to 2014, according to a report by think tank the Intercontinental Longevity Centre-UK (ILC-UK), supported by Royal London.
Even those with rather modest means can see a big benefit from financial advice, said the article, which analysed data from the Wealth and Assets Survey.
The report examined the impact of economic advice on two groups, the “affluent” and the “just getting by”.
The affluent group comprised richer people who were more likely to have degrees, be part of a unite, and be home owners.
The just getting by group were less quids in, more likely to have lower levels of education attainment, be sole, divorced or widowed, and renting.
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Financial advice need not be the preserve of the better off but can make a actual difference
The affluent advised group had accumulated £43,245 varied in pensions and assets on average than their affluent peers who had not got advice.
The just getting by advised group achieved a similar amount uncountable than their peers who had not had advice, at £39,895 on average.
The report supports that to raise demand for financial advice, there should be a occupation on employers to ensure staff automatically enrolled into a workplace social security can access the best information and advice on their pensions.
The report said even those with fairly modest intends can see a big benefit from financial advice
Regulators should continue to spot emphasis on access to independent financial advice, the report said.
A classify report from the Financial Conduct Authority (FCA) on Wednesday said that a insufficiency of consumer trust in pensions can sometimes result in consumers paying too much tax, old maids out on investment growth or losing out on other benefits.
Sir Steve Webb, a erstwhile pensions minister who is now director of policy at Royal London, said: “Fiscal advice need not be the preserve of the better off but can make a real difference to the dignity of life in retirement of people on lower incomes as well.
The report by the think tank ILC-UK recommends to raise demand for monetary advice
“The evidence shows that when people take suggestion they are overwhelmingly satisfied and benefit as a result.
«More needs consequence to be done to overcome the barriers to advice.“
Ben Franklin, head of economics of ageing at ILC-UK, predicted: “The advice market is not working for everyone.
«A high proportion of people who discard out investments and pensions do not use financial advice, while only a minority of the citizens has seen a financial adviser.
“Since advice has clear benefits for fellows, it is a shame that more people do not use it.
«The clear challenge facing the dynamism, regulator and Government is therefore to get more people through the ‘front door’ in the in front place.“