Article by Phil
Latest research from Royal London shines a light on why people don’t use financial advisers or wealth management advisors. The survey spoke to over 4,000 people which makes it one of the most comprehensive recent studies.
So, what did it find?
Unsurprisingly the cost of advice was the number one concern, with almost half of the people surveyed saying that advice was too expensive. Although 40% of those questioned didn’t have any idea what the average cost of advice was!
Over a third of people said that they didn’t need an adviser because they looked after their own money and 15% said that they didn’t need advice because they didn’t have enough money. That is an interesting view given that over a third of those surveyed had savings of £50,000 or more.
In a similar vein, 17% said that they were too embarrassed to talk to anyone about their finances. That means that 83% would be happy to speak to someone, but 17% is still very high in 2021.
But the standout result for us is that almost 30% said that they wouldn’t trust a wealth management financial adviser.
This is disappointing.
On closer examination however, it seems that half of those really meant that they couldn’t find an adviser or didn’t know one. That’s understandable and one of the reasons why existing client referrals are so important to advice firms. There’s nothing better than being recommended to someone. Almost half of our clients come to us via recommendations. The rest find us online. Hopefully they are assisted by our existing clients’ testimonials which are on Vouched for, Facebook and of course on Google if you search for Christina Clegg.
This is an area that all advisers need to work on.
