Article by Mhairi
We would say that using a local financial advisor adds value as you’d expect. But the latest survey from Standard Life firmly backs that up.
In their Retirement Voice report, they found that:
- 77% of people thought that using a local financial advisor had made them financially better off.
- 82% said that having an ongoing advice arrangement improved their financial situation with 77% saying that they felt confident about their pension arrangements.
- 72% of those just using their adviser on a casual basis when they need it also reported being better off.
- 27% said that using a financial adviser had made them between £20,000 and £40,000.
- 42% of people with over £1 million in assets use a local financial advisor.
- For people with between £100,000 and £250,000 to invest, at least 30% take some form of advice. Compared with just 9% of people overall.
But still only 14% of all people with over £100,000 invested are paying for ongoing advice with a local financial advisor.
Online financial advice growing.
The shift to simple advice should make access to advice, or at least some form of advice, more widely available.
In the latest research by AdviserSoftware.com they found that 30% of people would prefer online financial advice, rather than over the telephone or face to face. 8% of people also said that they would be comfortable with AI based advice. 25% would prefer a mix of face to face and online advice.
Of those with over £500,000 to invest over half said they would like an element of online legal advice as part of their advice package. We already offer this type of service to our clients, providing estate planning advice on Wills, Trusts, Probate matters and Lasting Powers of Attorney amongst other things.
Pension transfer advice on the rise.
The number of pension transfers has increased in June to its highest level since summer 2023. But the overall numbers of pension transfers still remain low. In June for example 2.5% of pension savers transferred their pensions. But this figure had been as low as only 1% for a long-time last year. Taking advice about whether to transfer your pension is always likely to be a good idea. At least you will know whether it’s going to benefit you in the long term or not.
Pension tax over payments.
HMRC has released figures showing that over 500,000 people have been repaid for over taxation on their pension withdrawals since 2015. The average reclaim is over £3,800 and in total over £1.5 billion has been paid out. A local financial advisor will help you with any reclaims due. But how many people might still be owed and not know about it because they didn’t use a local financial advisor?
Deferring state pension
Using a local financial advisor means that you will be up to date with the latest financial news and able to take advantage of any changes. For example, only 1.2 million out of 13 million pensioners currently defer their state pension payments. At the current rate deferring your state pension would add an extra 5.8% to your state pension over a year. Worth knowing if you don’t need to take the income from your state pension.
Two thirds of pensioners have no idea that this deferral option is available.
But what does a local financial advisor cost?
Well, you pay for what you get of course. We offer four different levels of ongoing service to suit everyone’s requirements. Gold, Silver, Bronze and Digital. All our fees are clearly set out on our website.
But sadly only 14% of local financial advisors publish their fees. Why not? Much better to be upfront about fees and charges.
Find an adviser soon
If you are thinking about taking advantage of the benefits of a local financial advisor you’d better act soon. The latest figures show that over 1,000 advice firms closed in the last 3 years. Ther are less than 2,000 financial advisers under the age of 30 and 7,000 over the age of 60, who are likely to be retiring soon.
Get more information.
For more information from your local Financial advisor why not contact Christina today. We offer a free initial meeting to discuss your requirements and explain how our service works. You are under no obligation to use us after that if you don’t want to and we won’t pester you.
So why not call us today on 01282 614444 or e mail us enquiries@ccfps.co.uk or use our contact form online.
