Over half (56%) of UK adults have never reviewed their finances with a professional, but one in five (20%) say they are likely to do so this year, according to a new YouGov survey commissioned by General Insurance (GI) platform provider Paymentshield.
The study involved 2139 UK adults and found that those aged 25-34, typically first-time buyers, are the most likely to seek financial advice this year.
This age group is also the most concerned about finances, with 45% stating finances are their biggest worry.
The survey indicates that consumer confidence in the value of financial advice has grown significantly.
Among respondents likely to seek professional financial advice this year, 46% said they believe they would be better off than if they opted for a DIY approach, such as using self-serve platforms or price comparison sites.
This figure marks a substantial increase from the 24% who gave the same response in April 2022.
As the cost of living continues to rise, 51% of respondents said they will scrutinise financial products more closely this year to save money, highlighting an opportunity for advisers to assist customers in assessing value.
For instance, 24% of homeowners do not review their home insurance annually, potentially resulting in outdated coverage or poor value.
The survey also revealed consumer uncertainty about understanding the value of policies purchased from price comparison sites, with 26% expressing a lack of confidence in their ability to comprehend what a policy covers.
Louise Pengelly, proposition director at Paymentshield, said: “This research clearly shows that in the current market, consumers value the expertise and reassurance they can get from financial advice, instead of opting for DIY approaches that many providers push.
“With a 25% rise in the cost of building materials alone, many consumers cannot afford to make ill-informed choices when it comes to home insurance. We expect advisers will see a rise in demand for their services this year, and there’s ample opportunity for them to provide additional support by discussing home insurance with their clients.
“There’s a lot of added value they could offer to remortgage customers in particular, many of whom may not expect but would evidently appreciate an offer to review their home insurance.”
