Close to seven out of 10 advisers are positive about establishing and proving the value of the service they offer, in response to claims that fees in the post-RDR are putting off mainstream clients.
BlackRock’s third Investor Pulse Adviser Survey, conducted among 250 advisers in the UK and 2000 consumers in the UK, found 69 per cent were positive on the ‘value of advice’, while over two-thirds were positive about the current investing environment.
The research also found that while 72 per cent of advised clients are positive about their financial futures, this falls to 47 per cent among those who do not have a financial adviser.
Advised clients invest double the amount compared to the average non-advised Brit, with 20 per cent of those who seek advice investing, compared to 8 per cent of those who do not seek advice investing.
Sixty-five per cent of UK advised clients have confidence in the UK stock market, however 60 per cent have a portfolio that would be described as ‘cautious’. While 45 per cent hold money in cash, this rises to 74 per cent of those without an adviser.
Jeremy Roberts, head of UK retail sales at BlackRock said that those who do seek financial advice are more confident and more positive about their financial futures than those who do not seek advice.
“Cash over time is ravaged by inflation... I am very aware that the announcement yesterday was that inflation was at zero, so I can’t get away without mentioning that, but over time inflation does severely eat away at savings.”
Elsewhere, the research found that even advised clients put short-term concerns ahead of long-term planning, with 51 per cent prioritising the state of the UK economy and 46 per cent concerned about the high cost of living.
This was followed by healthcare costs at 29 per cent, living longer at 25 per cent, housing/real estate costs at 15 per cent and unanticipated costs at 12 per cent.
The most common advice need from consumers was retiring, with 75 per cent, followed by receiving an inheritance at 66 per cent. This was followed by paying for child to go to school or university at 30 per cent and then downsizing a home to get extra money at 28 per cent.
The survey also addressed the issue of where people aged 55-74 will put their retirement savings after 6 April. It found that 26 per cent said they would stay invested in their pension, but use part of it to buy an annuity or make tax-efficient withdrawals. Around 17 per cent said they would withdraw the lot and invest it elsewhere or put it in the bank.
ruth.gillbe@ft.com
