On the eve of UK Financial Planning Week, a striking finding has emerged from the ‘State of Flux’ report by Canada Life and AKG. The study reveals that nearly half (45%) of UK adults have never seen a financial adviser, and over a fifth (23%) assert they would not seek financial advice under any circumstances, not even if it were offered free of charge.
The report also highlights that 21% of those disengaged from financial advice do not believe they possess enough wealth to justify consulting an adviser. In addition to these findings, more than a tenth (11%) of those not receiving advice distrust financial advisers, with 9% citing a fear of aggressive sales tactics as a deterrent.
However, there is a sense of regret among some for not having sought financial advice earlier. This regret is manifested in concerns by 35% of respondents about not having adequate funds for retirement. Additionally, 31% have underestimated the impact of inflation, and another 31% have experienced financial losses due to their reluctance to seek advice.
Tom Evans, managing director, retirement, at Canada Life, said: “Financial Planning Week marks an opportunity to discuss financial literacy and money management – and to address the advice gap.
“We are facing a pivotal moment where a significant proportion of UK adults say they aren’t willing to engage with financial advice and yet many share regrets later down the line for not doing so sooner.
“As an industry, we have a role to play in communicating the benefits of financial advice, and the value it has for consumers’ current and future financial success. Now is the time to be bold and challenge the current status quo.”
