Half of consumers haven’t sought financial advice

Around 50 per cent of UK consumers have never had their finances reviewed with a financial adviser, with the majority believing seeking such a service would be expensive, a survey by insurance provider Paymentshield has revealed.

The survey, commissioned by YouGov on behalf of general insurance provider Paymentshield, revealed consumers question whether advice would be useful.

Paymentshield is calling for brokers to proactively educate customers on the advantages of regularly reviewing their finances with a professional and to demystify what a financial review process looks like.

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YouGov surveyed more than 1,000 people throughout the UK.

Paymentshield has launched a ‘personal finance MOT’ campaign and updated the adviser toolkit containing product information and campaign ideas to support brokers in encouraging customers to contact them to arrange a review of their financial situation.

Tim Johnson, chief executive of Paymentshield, said: “Yet again we are seeing a large number of people leaving themselves in a vulnerable position, having never consulted a professional adviser on their finances.

“There is a real opportunity here for brokers to demonstrate their true value to customers by taking a closer look at their customers’ overall financial situation, not just mortgages and investments and providing a holistic service.”

Peter Malone, a financial adviser at Hurst Insurance Services, believes there is a need for customers to seek more guidance from professionals:

He said: “Customers are always thinking ‘it will never happen to me’ which is why they’re reluctant to seek financial advice. But then they find out they don’t have the right protection or insurance in place and it is too late.

“It is our job to put things into perspective for them and make sure they’ve got the right cover for their needs.”