UK adults shun advisers

05 Nov 2019

Nearly Half of British Adults Are Reluctant to Talk to Advisers

A report published by wealth management firm Sanlam UK shows that 48% of British adults are choosing not to consult advisers regarding their finances.

Over 1,000 adults were surveyed as part of this research. Of those who have never spoken to an adviser, 44% were confident they could manage their finances themselves. Half of the respondents taking the ‘do-it-yourself’ approach said they aren’t seeking advice from alternative sources, while 26% are relying on family members for direction.

According to the report, older generations are least likely to seek financial guidance from advisers, with 51% of over-65s admitting that they have never spoken to a financial adviser. Of those, 57% say this is because they are capable of managing their finances on their own.

It was recently revealed that 55% of savers were unsure that they could retire when they had planned to and 77% of Britons haven’t set targets for retirement savings. However, Sanlam UK’s research shows that those who had received advice felt more confident ahead of retirement, compared to those that hadn’t.

250 financial advisers were also included in further research carried out by the firm. 88% of advisers believe that their average client is prepared for retirement and 34% have encountered problems caused by clients trying to manage their own finances instead of seeking professional advice. Advisers believe that the availability of online resources prevents prospective clients from approaching them.

Sanlam’s Head of UK Intermediaries and Distribution, Lawrence Cook, said:

“In this age of accessible information, the temptation is to think that all the answers to problems we face can be found online. When it comes to retirement, the real task lies in identifying the right questions to ask. Holistic financial planning is about so much more than tactical advice, and most will naturally be unaware of the financial planning strategies that can help them reach their financial goals.

At the heart of the problem, many are simply crossing their fingers – in some cases burying their heads in the sand altogether. The truth is the majority – 55% – have doubts they will be able to achieve the retirement they want. The fact remains that proper, robust financial planning is the best way to ensure you can achieve your financial goals in a smooth and timely way.”

By Melissa Jones