Here, have £47,000. (Sounds good doesn’t it?)
What could you do with an additional £47,000 over the next 10 years? Go on a dream holiday? Pay off some debt? Grab a new car? Perhaps retire earlier?
Don’t worry, this isn’t a ‘get rich quick’ scheme. It’s more like a ‘be better off slowly’ scheme as recent research has shown that people who take financial advice could be on average £47,000 better off in in just 10 years.
Tell me more?
The research was carried out by Royal London and the International Longevity Centre UK (ILC) based on data that the Government collected as part of its Wealth & Assets Survey (the largest such survey in the UK).
It showed that those who took financial advice between 2001 and 2006 saw their assets boosted by an average of £47,706 by 2016, compared to those who didn’t take any form of advice.
Yes but advice is just for rich people isn’t it?
Actually that’s where you would be wrong. Perhaps the biggest surprise from the research was that:
“The benefits of financial advice are potentially greater for those we term ‘just getting by’ than for those we consider ‘affluent’.”
Here’s the proof:
- ‘Affluent’ clients saw a 24% rise in their financial wealth (shares, bank accounts, ISAs etc) and 11% in their pension wealth from taking advice.
- ‘Non-affluent’ clients saw an even larger 35% uplift in their financial wealth and a 24% rise in their pension wealth from taking advice.
What’s the Logic view?
Commenting on the findings, Logic Financial Services director, Harj Heer (above) said:
“We always say that we want our clients to make the most of their assets so they can lead a financially secure life and leave a lasting legacy from generation to generation. And it’s great to see this research confirming how taking financial advice can – and does – boost assets.
“But rather alarmingly, the research also revealed that around 40% of people who took out an investment product over the same period didn’t take any advice at all. This rose to nearly 80% for those who took out a personal pension. It is worrying that people could be missing out by not taking advice.
Phone a friend?
“More positively, those people who built up an ongoing relationship with their financial adviser had pension pots on average 50% higher than those who only took one-off advice at the start. So if you’ve ever needed a reason to make friends with a financial adviser then this may be it!”