Research shows that those taking financial advice are on average £40,000 better off compared to those not taking advice.
The International Longevity Centre and Royal London looked at the impact of taking professional advice on the finances of various defined groups of people. The first group consisted of affluent, university educated individuals. The second group was made up of those ‘just getting by’, single, renting and less well educated. The groups were then subdivided into those who received advice and those who didn’t.
The affluent and advised group accumulated £12,363 (17%) more in liquid assets and £30,882 (16%) more in pension wealth than those who were affluent and non-advised.
A similar picture appeared in the less affluent group. Those who received advice accumulated £14,036 (39%) more in liquid assets and £25,859 (21%) more in pension wealth than those who were ‘getting by’ and non-advised.
Although, this research makes a clear case for seeking informed advice, a high proportion of people still invest without it. There could be two reasons for this:
- They don’t want to pay the costs involved and believe they’ll save money by not using a financial adviser.
- They think they might do it themselves, often using the internet, believing they can achieve equivalent or better outcomes.
However, the research shows that there is real value in seeking out good professional advice. It will guide you away from the pitfalls and lead you towards opportunities that have a measurable financial benefit.