Half of adults believe financial advice is for the wealthy
The research, which surveyed 2,000 UK adults aged between 18-75, found that almost two-thirds (64 per cent) of adults with savings, investments or a mortgage have not sought regulated financial advice in the last five years.
More than one in five of those who obtained free guidance rather than regulated advice said they did so because they believed the service was “too expensive”.
The survey found that young people between the ages of 18 and 34 were most likely to agree that it should be easy to invest without needing professional financial advice.
More than half of UK millennials (60 per cent) and Gen Z (57 per cent) with financial products agree they can find good financial advice online, and almost half (44 per cent) of Gen Z believe they can source good financial advice on social media.
Caroline Rainbird, chief executive of FSCS, said: “The financial ‘advice gap’ is a concern for FSCS, particularly as scammers will prey on peoples’ fears and exploit any gaps in their financial knowledge, putting them at greater risk of making poor decisions about their money.
“Our latest research shows that consumers are looking for easy ways to invest, whilst also getting the right support. The FCA’s Consumer Investments Strategy looks to make advice on mainstream investments more accessible and affordable to everyone, which is something we welcome.”
Of the 2,000 UK adults aged 18-75:
- 1,901 have financial products.
- 1,660 adults currently have savings or investments or a mortgage.
- 678 adults currently have savings or investments or a mortgage and have taken financial advice.
- 203 adults currently have savings or investments or a mortgage, have taken financial advice and have used paid for regulated advice.
- 128 adults currently have savings or investments or a mortgage, have taken financial advice but did not use a regulated FA.
With investments, pensions and cryptocurrency scams on the rise, as fraudsters seek to take advantage of the cost-of-living crisis, FSCS said its research suggests there is a greater need for consumers to understand the difference between regulated advice and guidance, and what to expect from each.
Not seeking regulated advice, or following guidance from unregulated and unsuitable sources, could put UK adults at higher risk of putting their money somewhere that is not safe.
Rainbird added: “At FSCS we see the impact of poor advice every day. It results in millions of pounds each year disappearing from consumers’ pockets.
