Financial advice gap grows
The national survey found half of them believe their savings and investments are too small to interest financial advisers while one in five blames the withdrawal of financial advice services on the High Street and financial advisers closing businesses.
However there is growing demand and a need for advice – the research reveals 47% of people are deterred from investing in equity-based products due to a lack of knowledge. And 35% of savers are put off saving due to the current low interest rates driven by the Bank of England keeping the base rate at 0.5%.
The research is echoed by financial advisers themselves – around 91% of advisers warn of a growing financial advice gap in the UK with 45% of them blaming the introduction of the Retail Distribution Review and 23% saying the withdrawal of advice on the High Street is also making it harder for people to access help.
Advisers expect the situation to worsen – 53% expect to have to stop advising some clients as their accounts are no longer commercially viable.
Simon Broadley, retail investments manager at Yorkshire Building Society, said: “We feel offering a service like this is important particularly as changes in financial regulation have prompted many other High Street financial institutions and advisers to withdraw advice.
“Clearly there is a problem when 27% of people who want advice are finding it difficult or very difficult to find help.”