In an increasingly uncertain world, people in the UK who have taken financial advice feel more comfortable thinking about difficult subjects relating to later life than those who haven’t, according to new research by Standard Life, part of Phoenix Group.
Advised people are more at ease with topics such as illness, care and growing old, suggesting they are more likely to have considered these issues and factored them into their financial plans.
Standard Life’s Retirement Voice study, conducted among nearly 6,000 UK adults, found that more than two in five (42%) of those who don’t receive advice find it uncomfortable thinking about becoming ill themselves, and 32% struggle with contemplating a loved one’s illness.
In comparison, fewer people who have taken advice find these subjects difficult to think about, with 32% saying they feel uncomfortable thinking about becoming ill, and 24% feeling similarly uncomfortable thinking about a loved one’s illness.
The research also found that advised people are more likely to have put plans in place to deal with difficult scenarios in the future, with twice as many having made a will compared to those who don’t receive advice (54% vs. 27%).
Chris Hudson, retail advised managing director at Standard Life, said: “Our research shows that financial advice goes way beyond just number crunching. It helps create an order around issues that are difficult to contemplate such as illness in later life, care needs and financial security.
“These issues can have a huge bearing on your finances, so it’s important to begin think about them and incorporate them in a holistic plan to help ensure that you’re as prepared as possible for the eventualities of later life.”
He added: “As people are living longer, their retirement finances are going to have to stretch further than before. When it comes to addressing difficult topics that can often arise in later life, there’s a clear difference in the levels of comfort among those who had have accessed advice compared to those who haven’t.
“Unfortunately, financial advice remains inaccessible to many, who either can’t afford it or don’t know where to get the support they need. With the financial regulator (FCA) recognising the issues and holding a consultation into broadening access to financial advice, we’d like to see an environment where consistent, high quality and accessible guidance and advice is made available for all.”
