The survey of 13,000 adults found that while responses from rural and urban areas varied slightly, there is an overall lack of trust for financial advisers “to act in the best interest of their clients.” Even fewer respondents, only 31%, said that they consider financial companies to be honest and transparent.
More troubling is that one in eight of those who have received financial advice claimed that they were mis-sold an investment or pension product, potentially leading to further distrust in years to come.
There are, however, opportunities for financial advisers who can break through these trust barriers and offer a service that bolsters both their clients’ confidence and the image that they present to potential new customers.
The figure for those in the UK who accessed regulated advice in 2017 was as little as 6%, yet only just over a third of those surveyed are “highly confident” in managing their money. The survey also found that large numbers of people are unsure of where to look for a financial adviser, particularly in the North West and, perhaps surprisingly, in London.
Along with these findings, reliance on the state pension among retirees points to not only a potential problem for individuals and the economy but also a genuine need for sound financial advice and planning services. With 71% of respondents having no investments, financial advisers should not ignore the untapped potential of the market.