The perceived barriers to financial advice is deterring 11mn UK adults from seeking support.
St James’s Place Real Life Advice report, which launched its first chapter on Thursday (September 12), surveyed 12,000 people to understand how financial advice and guidance of all forms impacted individuals and families across the UK and explored the perceived barriers that stand in the way.
The survey revealed three barriers which prevented people from seeking advice which comprised relevance, perception and timing.
A third said their personal situation was too simple to require advice while eight per cent had not considered advice because they were not aware of its potential benefits, with the figure rising to 14 per cent for 18 to 34-year-olds.
Of those aged 18 to 34, 14 per cent thought it was either too early or too late to take advice with six per cent of those over the age of 55 feeling the same.
According to the report, 24.6mn people across the UK have never accessed any kind of financial advice or guidance.
Mark FitzPatrick, chief executive of St James’s Place, said: “Financial advice and broader guidance can transform lives, but millions are not reaping the benefits because perceived barriers are holding them back.
“Many believe their circumstances don’t warrant advice, they’re unaware of how it might help them, or they feel it’s too early or too late to take that leap. As a result, they’re missing out on the improved financial and emotional wellbeing advice can bring.
“Too often advice or guidance is seen as only for the two extremes: for the very wealthy or for those in financial strife. We have to come together to break down these indisputable barriers.”
Positive impacts of advice
SJP’s research also explored the positive impact of financial advice and guidance on people’s lives with 84 per cent saying it benefited them mentally and emotionally.
This increased to 92 per cent amongst those who receive ongoing financial advice from a qualified firm or individual.
Two thirds of respondents reported an improvement in their quality of life with 32 per cent having a more comfortable retirement.
When asked how advice benefited people with less than £20,000 in assets, 30 per cent said it gave them a better understanding of their finances while 24 per cent felt less vulnerable.
FitzPatrick added: “The FCA’s proposed advice guidance review is a real opportunity to increase access to support and a moment to come together more widely to find solutions to the increasing pressures we face on our future finances.
“At a time when the wealth gap between the generations continues to grow, the first rung of the housing ladder feels further out of reach and the responsibility for our retirement falls more firmly on our shoulders, our industry must do more to break down the barriers and connect people with the support they could benefit from. Until we do this, millions will stop short of aspirations that are well within their reach."
