Consumers put off by the cost of advice

Nia Williams

November 25, 2010

That’s according to the latest YouGov poll carried out for IFP and Financial Planning Week (22-28 November) in association with NS&I (National Savings & Investments).

The Institute of Financial Planning (IFP), which is co-ordinating this national consumer awareness campaign, is running a series of daily polls throughout the week, to find out what people are thinking when it comes to money – and how they are dealing with their personal finances.

This poll indicates the cost of advice is particularly an issue for those in the 25-34 age bracket (38%) compared with just 22% of those aged over 55. A lack of trust or confidence in the adviser is also a factor, with 18% of respondents overall citing it as an obstacle to them seeking advice.

Nick Cann, CEO of IFP commented: “Today’s result shows us that cost and lack of trust still weigh heavily on people’s minds when they consider their need for financial advice.

“This means that the profession still has a huge job to engage properly with the people it is trying to help. Getting good advice is a crucial part of taking control of your finances, but it’s vital that people clearly understand both the costs and the value of that advice.

“There are individual firms that communicate this very well, but overall the statistics tell us that we as an industry could still be doing more to get the message out.”

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