Seeking financial advice may stereotypically be only for the well off, but recent new research shows that everyone can benefit – on average by £40,000.
An independent report analysed two different types of groups in the UK who had taken financial advice: ‘affluent’ (part of a couple, a home owner and with higher education) and those who are ‘just getting by’ (renting, single/divorced/widowed, and a lower level of education). Despite the differences between the two groups, compared to those in the same circumstances who didn’t take any financial advice, both groups found themselves on average to be £40,000 better off.
The ‘affluent’ group on average benefited by £12,368 (17%) more in liquid financial assets and £30,882 (16%) more in pension wealth, compared to the ‘just getting by’ group with £14,036 (39%) and £25,859 (29%) respectively.
It was not only a benefit of £40,000 in liquid financial assets and pension wealth that was identified, but also behavioural patterns towards money and planning. By taking financial advice the individuals increased their savings (6.7% – 9.7%) and focused on investing their money in the equity market (9.7% – 10.8%).
The real impact and return on obtaining financial advice couldn’t be more evidential. The report highlights that by seeking expert advice on your finances, regardless of your circumstances, clear and tangible benefits can be generated, leading to a more profitable and secure future.
*Source: International Longevity Centre – UK (ILC-UK) – The Value of Financial Advice Report 2017