Demand for fee-based advice undimmed by RDR

The same proportion of the UK population is willing to pay for financial advice as pre-Retail Distribution Review suggesting that the demand for advice has remained unchanged by the rule changes, according to an extensive survey conducted by Axa Wealth.

Just over one in four of a little more than 2,000 people questioned as part of the firm’s most recent ‘big money’ Index said they are willing to pay for financial advice, the same percentage as pre-RDR.

Although the wealthiest segments remain unsurprisingly most likely to turn to professional advisers, 25 per cent of young professionals said they are happy to pay for advice to help them manage their money, the research found.

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David Thompson, managing director of Axa Wealth’s Elevate platform, said: “Axa’s latest Big Money Index would suggest that pre-RDR concerns that consumers would be less willing to pay for financial advice as it became more ‘transparent’ seem to have been unfounded.

“The number has remained consistent over the past 12 months, suggesting the RDR has not damaged the industry as some commentators may have feared.”

Earlier this year, research by Axa Wealth found that one in five consumers who had never sought financial advice in the past intend to do so in the future to make sure they have enough income in retirement.

Mr Thompson added: “As economic uncertainty and financial pessimism continue, consumers are willing to pay for professional financial advice to help make the most of the money they have. It will be interesting to see how this trend develops, as the effects of the RDR begin to bed in over time.”