Consumer Financial Advice report launched

21 Nov 2018

Around one-quarter of Investors take consumer financial advice

Currently, 26% of Investors take professional advice, with advice most likely to be sought and taken by wealthy investors who lack confidence in their own investing abilities.

But potential to expand the consumer financial advice market

Only around one-in-ten Investors say they would never take professional financial advice whether that be from a human or computer (Robo-Advice), indicating the potential to expand the number of Investors getting professional advice. In terms of expanding their target market, advisory firms will be aided by the fact that professional advisors, especially IFAs, are thought of highly by Investors who are currently Unadvised and by the fact that Unadvised Investors clearly have some need for advice, guidance and/or support.

Key findings from the the consumer financial advice report

Professional advice is used to an above average degree by Investors who are: Risk Takers (own risky investment products), have wealth of £100,000+, are from the AB social grade, are males and are age aged 25-44.

Financial advice is primarily sought for investment selection, planning or management and pension selection and planning.

  • Only 41% of consumers feel confident enough or feel they have enough knowledge to buy a financial product or invest without professional help.
  • 39% of Investors using professional advisors use an IFA
  • 21% of Investors are Under Advised (i.e. they need investment support but do not get it).
  • 67% of the Unadvised Investors would find some form of professional advice, guidance or support beneficial
  • Only 44% of consumers (48% of Investors) would know how to start a search for a financial advisor if they wanted one.

Aims of the consumer financial advice report

The aim of this report is to study how UK consumers obtain and judge the advice they receive when they make financial investments. This is studied in terms of consumers who currently own investments and consumers who hold money in a form which could potentially be released and invested in investment products (e.g. held in cash or defined contribution – DC- pensions if the consumer is aged 55+). The report considers what types of advice consumer want, where they and how they access advice and how much understanding do they have of the advice process. It also considers how consumer investment behaviour has been influenced by online developments such as Robo-Advice and how the Retail Distribution Review has influenced behaviour.

This report (69pp) and the detailed dataset of all survey results with a demographic analysis is available directly from IRN Research, priced at £2,500 (plus VAT) each.  Discounts for multiple report purchases, report only, dataset only, or purchases of extracts.

Download the report description

Related IRN Reports

Consumer Investments  Consumer Research Report 2018

UK Retail Financial Advisor and Intermediary Market – Market Trends Report 2018



IRN Team

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