Financial Advice Survey Results
Read the highlights of the YBS commissioned survey on modern attitudes to financial advice
9 June 2014
BANK RATE CHANGE
On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effective from 0.25% to 0.50%.
Making a final decision on long-term financial plans can be incredibly difficult, especially when there is potentially a lot at stake. If we are saving for early retirement, a wedding or a child’s education, we all want to reduce the element of risk as much as possible to ensure we don’t end up with insufficient funds. It is clearly important we are seeking sound, financial advice when making a decision on such matters.
In April Yorkshire Building Society and OnePoll carried out a survey amongst 2,000 U.K. adults to try and understand modern attitudes towards long-term financial planning. The results make interesting reading:
Nevertheless, face to face discussions are still important to many respondents:
In 2013, a number of financial organisations withdrew from providing financial advice or introduced minimum criteria, leaving many potential customers having to seek help elsewhere. Yorkshire Building Society took a different approach, teaming up with Legal & General to offer no-obligation advice to everyone, regardless of their financial status.
Interestingly, the survey showed that there are differing opinions over how much money respondents think they need to benefit from financial advice, suggesting that the change in some organisations’ approach may be affecting people’s attitudes.
Having sufficient funds to benefit from financial advice was a concern of many respondents but by far the biggest concern was finding someone they can trust, 63% saying that this was the biggest hurdle. Other responses included:
With deposit account interest rates so low, the potential effects of inflation eroding the real value of savings over time is an issue for many savers but a quarter of respondents weren’t aware of the problem. Even so, seemingly many who are aware don’t tend to shop around for the best rate, with 30% of all respondents doing this once a year or less and 28% not bothering at all.
These results seem to suggest that many people are not seeking professional financial advice, with trust and having insufficient funds both cited as hurdles. If the resources currently being used to gain information are unreliable or unbalanced, it could be difficult to make informed decisions on our finances and this could prove costly in the end.
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