Saving money is a top financial priority for most people, followed by investing for retirement and paying off credit card and other debts, according to a BlackRock survey.
BlackRock’s third Investor Pulse adviser survey said, while the majority of adults in the UK are a lot more positive about their financial future compared to 12 months ago, paying off debts and mortgages is still a concern.
Jeremy Roberts, head of UK retail sales at BlackRock, outlined six common mistakes people make, according to financial advisers. These include holding too much cash, focusing on short-term results, not taking inflation into account, ignoring tax efficiency while investing, and not factoring in a longer life expectancy.
The survey – conducted among more than 250 advisers and 2,000 consumers in the UK – found 69 per cent were positive on the “value of advice”, while more than two-thirds were positive about the current investing environment.
In order for clients to make the right decision, it is important to seek the correct financial advice. A number of reports have shown individuals are falling through the advice gap by not making use of advisers.
And new research from Unbiased.co.uk and MetLife shows 58 per cent of adults have never taken professional advice. As part of the research, advisers were also asked to rank the most important areas on which consumers should be seeking advice. Retirement decisions emerged as the highest priority, followed by other life issues such as long-term care and critical illness cover.
However, when people were asked in what areas they had sought advice, the results were less surprising. While mortgages and life insurance topped the list, retirement planning and savings were not too far behind.
The report also reveals a gender gap when it comes to financial planning. It shows women as less likely than men to seek professional advice across all areas of finances. The report further states that only 7 per cent of women have taken professional advice to help them plan for retirement, compared with 16 per cent of men.
“There’s no reason why women should be less focused on their finances. Yes, there is still wage and employment inequality, but if anything this makes a stronger case for women to seek professional advice on their finances, and in particular their retirement planning,” said Karen Barrett, chief executive of Unbiased.co.uk.
