A recent study has revealed that a considerable proportion of individuals in the United Kingdom are disinclined to accept free financial advice. According to the research, 25% of respondents would decline the opportunity to receive professional financial guidance. Moreover, 45% of individuals have never sought advice from a financial advisor, and 21% believe that their wealth does not warrant such assistance.
Additionally, the “State of Flux” report by AKG has outlined some of the reasons behind the rejection of professional financial advice. These include a lack of trust, with 11% of respondents expressing this sentiment, and a fear of being subjected to ‘pushy sales techniques’, which was reported by 9% of participants.
Notably, the decision to forego professional financial advice has resulted in regrets for 12% of the 2,000 respondents. Furthermore, 31% of individuals have experienced financial losses as a direct result of not seeking professional guidance. Consequently, a third of the respondents are now concerned about having insufficient funds for their retirement.
It is crucial for individuals to consider the long-term implications of their decision regarding financial advice, especially in light of increasing life expectancy. Initiating contributions to a pension scheme early in one’s career provides the best opportunity for leading a comfortable life during retirement.
The “State of Flux” report was sponsored by Canada Life to coincide with “Financial Planning Week” on 22 January. This event, organized by the Chartered Institute for Securities & Investment (CISI), aims to encourage adults to consider and make prudent economic plans for their future.
Tom Evans, the managing director at Canada Life, emphasized the importance of discussing financial literacy and money management, particularly in relation to the reluctance shown by a significant proportion of UK adults in engaging with financial advice. He stressed the need to address the advice gap and urged the financial industry to communicate the benefits and value of seeking professional financial guidance to ensure current and future financial success.
Evans stressed that bold steps need to be taken to challenge the prevailing status quo and to demonstrate the positive impact of financial advice on consumers’ financial well-being. This signifies a pivotal moment for the industry to re-evaluate its approach to reaching and engaging with individuals on the importance of seeking professional financial guidance.
In conclusion, the findings of the “State of Flux” report underscore the importance of seeking professional financial advice. With a significant number of UK adults hesitant to engage with financial advice, it is essential for both individuals and the financial industry to recognize the long-term benefits of seeking professional guidance. Making sound economic plans and having a comprehensive understanding of money management are fundamental to ensuring financial security and success in the future.
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