The vast majority of consumers have picked their adviser based on a recommendation from a trusted source.
LV=’s quarterly Wealth and Wellbeing Monitor found 90 per cent of investors polled said they had found their adviser after speaking to either a friend, a financial adviser or one of their financial services providers.
LV had asked 4,000 consumers about their attitudes towards spending, saving and retirement, including the mass affluent with assets of between £100,000 and £500,000 excluding property.
A considerable 40 per cent told it they had never consulted a financial adviser, but of those that had 30 per cent had found their adviser through speaking to friends, family and colleagues, while 17 per cent had spoken to a friend who is a financial adviser.
A combined 52 per cent had spoken to their employer, pension provider, estate agent or other financial services providers, while a relatively small 24 per cent said they had found their adviser online or via adviser directory Unbiased.
The numbers do not add up to 100 per cent as more than one answer were possible.
Going it alone
Meanwhile the provider found 40 per cent of UK adults had never seen an adviser, rising to 60 per cent for the mass affluent.
The top occasions where mass affluent consumers felt people should take financial advice were choosing to invest a large lump sum, inheritance tax planning, and deciding how to access a pension (40 per cent versus 31 per cent of the wider population).
The research also found 46 per cent of non-advised mass affluent people thought they could make financial decisions on their own.
A further 27 per cent said they did not want to pay for financial advice, with 20 per cent saying it would be too expensive.
A quarter of respondents did not think financial advice offered good value for money.
Clive Bolton, managing director of savings and retirement at LV=, said: “Taking financial advice is an excellent idea because it compensates for the emotional biases people have when they make big financial decisions.
"A DIY approach to managing large pensions funds at retirement is fraught with risk but an adviser will provide an impartial, cool-headed approach to their client’s finances and offer solutions that the client will not even have considered."
He added: “People may be put off by the fees for advice but paying for good quality financial advice is a small price to pay to avoid expensive mistakes."