Are financial advisors missing out on 1.2 million clients?

23 Sep 2020

21% of Savers and Investors take some form of financial advice

 Most Savers and Investors (72%) adopt the DIY approach to saving and investing, i.e. they manage all of their saving and investments totally themselves.  21% of Savers and Investors take some form of professional guidance and/or advice, of which  17% adopt the mixed or hybrid approach, combining self-management of some of their savings and investments (or some of their decisions) with getting help from professional financial advisors, with only 4% handing over all their investing decisions to professional advisors (the Professional Approach).

Financial advice usage rises with wealth

The percentage of Savers and Investors who want some form of professional help (i.e. adopt the Professional Approach or Mixed Approach) tends to be higher if the saver and investor:

  • has more wealth
  • holds investment products rather than cash-based savings products (i.e. is an Investor rather than a Saver)
  • makes plans for their financial future (i.e. is a Strategist) rather than not making plans (i.e. The Impromptu)
  • accepts risks
  • wants capital gains rather than income

But financial advice is not reaching the wealthy under-advised

There is a pool of Wealthy Investors (i.e. those with wealth in saving and investment products, other than pensions and property, of £75,000 and above) who currently do not take professional financial advice and so could be targeted by professional advisors. Among these individuals the core target for advisory firms are Wealthy Investors who are currently Under-Advised, that is they self-manage their own savings and investment while also lacking the fundamental skills and confidence to do so. If these individuals could be converted to consumers who take some professional advice, this could expand the customer base for financial advisors by around 1.2 million consumers.

Retail Financial Advice Report

These findings come from the IRN Research report Retail Financial Advice 2020. The aim of this report is to study how UK consumers obtain and judge the advice they receive when they make financial saving and investment decisions. The report considers what types of advice consumers use, where they and how they access advice and how willing are they to pay for advice. It also considers how consumer investment behaviour has been influenced by online developments such as Robo-Advice and how advice has influenced consumer reaction to COVID-19 and saving and investment scams. For this report, IRN Research commissioned Made in Surveys Group (MIS) to conduct a survey among its online panel, drawing on a nationally representative sample of 2,076 UK adults aged 18+, which generated a sample of 2,032 individuals own any savings or investment products.

More report details

Related IRN Reports

Wealthy Savers and Investors 2020 

The aim of this report is to study UK consumers with wealth held in saving and investment assets of £75,000 and above. It considers how these individuals invest their money and obtain and judge the advice they receive when they make financial decsions.

How Consumers Save and Invest 2020 

The aim of this report is to study how UK consumers behave when they make financial investment and saving decisions. The report considers what types of saving and investment products consumers hold, how they purchase and invest and what factors drive their decision making.

UK Retail Financial Advisors – Market Trends Report 2020   

This market data report considers the retail financial advice and intermediary market, covering regulated and unregulated advice offered to consumers when buying financial products or organising their financial affairs.

UK Consumer Savers and Investors 2020  

The central focus of this market trends report is the types of investment and savings products consumer own, how much they are investing and the environmental framework in which investments are made. It looks at the structure and size of the market, recent trends and future developments.

Share

IRN Team

Leave a Reply

Your email address will not be published. Required fields are marked *