Third of people feel financial advice costs too much

A third of people shun financial advice because they believe it is too expensive and one in 10 believe advisers can’t be trusted.

A survey of 2,002 people aged 20 to 55-years-old conducted by Foster Denovo found a third of respondents would rather seek financial advice from friends and family than a professional adviser.

The research identified cost as a major factor in the choice, with 34 per cent of respondents claiming they did not seek professional financial advice because it was “too expensive”.

The survey also found 14 per cent of respondents shunned professional advice because they did not trust advisers, a figure Foster Denovo suggested highlights the size of the task faced by the industry in “proving its worth”.

Mr Brosch, chief executive of Foster Denovo, said he found many of the findings concerning but not necessarily surprising. He said: “Sound advice is key to a secure financial future and it is encouraging to see that many of those who have sought advice, agree with this sentiment.”

Of the survey’s respondents, 72 per cent of those who sought professional advice said it had improved their finances.
Mr Brosch said: “In our view, particularly for the important life decisions, there is no substitute for professional financial planning.  Our sector will only truly thrive when we are able to engage and implement effective intergenerational planning, and that requires us to constantly innovate and adapt to the changing needs of younger clients who will wish to interact differently in future.”

Read the full article on FT Adviser here.