Why Seek Advice

"A new report by leading independent think tank, the International Longevity Centre - UK (ILC-UK) and supported by Royal London Mutual Insurance Society, finds that those who received financial advice in the 2001-2007 period had accumulated significantly more liquid financial assets and pension wealth than their unadvised equivalent peers by 2012-14.

The report, 'The Value of Financial Advice' which analysed data from the largest representative survey of individual and household assets in Great Britain, the 'Wealth and Assets Survey' examined the impact of financial advice on two groups:

Those deemed wealthier, more likely to have degrees and be homeowners, the "affluent".
and;
Those deemed less wealthy, who are more likely to have lower levels of educational attainment, and be living in rented accommodation, the "just getting by".

The 'Value of Financial Advice' report found that:

The 'affluent but advised' accumulated on average:
        £12,363 (or 17%) more in liquid financial assets than the affluent and non-advised group, and;
        £30,882 (or 16%) more in pension wealth
Total additional wealth of £43,245

The 'just getting by but advised' accumulated on average:
        £14,036 (or 39%) more in liquid financial assets than the just getting by but non-advised group, and;
        £25,859 (or 21%) more in pension wealth
Total additional wealth of £39,895


The benefit was not restricted to accumulated wealth. Over the period, those who had received advice also had more pension income than their peers:
        The 'affluent but advised' group earned 16% more pension per year than the equivalent non-advised group and;
        The 'just getting by but advised' group earned 19% more pension per year than the equivalent non-advised group.

The research overwhelmingly demonstrated the satisfaction of those who had engaged the services of an Independent Financial Adviser, with 90% of those surveyed being happy with the advice they received.

Ben Franklin, Head of Economics of Ageing, ILC-UK said:
"Our results show that those who take advice are likely to accumulate more financial and pension wealth, supported by increased saving and investing in equity assets, while those in retirement are likely to have more income, particularly at older ages.

Steve Webb, Director of Policy, Royal London said:
"This powerful research shows for the first time the very real return to obtaining expert financial advice. The evidence shows that when people take advice they are overwhelmingly satisfied and benefit as a result."
A copy of the 'Value of Advice' is available to download from www.ilcuk.org.uk