Study finds that people who take advice are on average £40,000 better off

A new collaborative study by think tank the International Longevity Centre and Royal London has found that individuals who sought financial advice between 2001 and 2007 “accumulated significantly more liquid financial assets and pension wealth than their unadvised equivalent peers” by 2014.

Financial Advice Tax PlanningThe report categorised subjects in to affluent and just getting by and found that both groups benefited significantly from having taken financial advice. They were also more likely to save and more likely to invest in equities than those who did not take advice.

9 out of 10 subjects reported that they were satisfied with the advice they received, with a clear majority accepting their adviser’s recommendation.

Sir Steve Webb, Director of Policy at Royal London said “This powerful research shows for the first time the very real return to obtaining expert financial advice. What is most striking is that the proportionate impact is largest for those on more modest incomes. Financial advice need not be the preserve of the better off but can make a real difference to the quality of life in retirement of people on lower incomes as well. The evidence shows that when people take advice they are overwhelmingly satisfied and benefit as a result. More needs therefore to be done to overcome the barriers to advice.”   

You can read the full report here.

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