Over one-third of Investors take advice

21 Feb 2022

36% of Investors have used financial advisors over the past three years

36% of Investors (equivalent to 18% of all consumers) have used a financial advisor in the past three years, where financial advice must be paid for and is personal to the Investor (e.g. it is regulated financial advice). These Advice Takers generally use the same advisor across multiple financial products, with three-quarters using the same advisor for their investment, savings and pension decisions. Moreover, over six-in-ten Advice Takers rely heavily on their advisor, with the advisor managing all or most of the Investor’s investments, savings and pensions. Independent financial advisors (IFAs) are the most popular type of advisor, used by almost four-in-ten Advice Takers over the previous three years.

These findings come from the IRN Research report Retail Financial Advice 2022. For this report, IRN Research commissioned Maru/Blue to conduct a survey among its online panel, drawing on a nationally representative sample of 2,148 UK adults aged 18+. This generated a sample of 1,076 individuals who own any type of investment product.

Financial advice most likely to be use by affluent Investors

The use of financial advisors is highest for Investors who are below the age of 45, from the A social grade and who own above average levels of wealth (£100,069 on average, compared with £73,657 for all Investors). Advice Takers also tend to own more investment products compared with Non-Advice Takers, reflecting their greater level of wealth.

Potential to expand the use of financial advice

There is potential to expand the use of advisors by Investors. Over six-in-ten Non-Advice takers are open to taking some form of advice in the future. Despite its low current usage, there are indications that Robo advice could become more popular in the future for both Non-Advice Takers and Advice Takers. Over half of Investors using a financial adviser express an  interest in Robo Advisors as do over one-third of Investors who currently do not use any type of advisor.

About the 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 investment decisions. The report considers what types of consumer take financial advice, on what subjects advice is sought, how advisors are used and selected and why consumers owning retail investment products would not take advice. 

See a detailed description of the report

Related IRN Reports

How Consumer Invest 2022 (Consumer Research Report)

UK Consumers and Savers 2022 (Market Data Report)

UK Retail Financial Advisors 2021 (Market Data Report)

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IRN Team

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