6 Feb 2020
We recently worked with the International Longevity Centre to put a number on how much financial advice is worth to those who receive it. Here, Tom Dunbar elaborates on the findings of that research.
There are many myths and misconceptions around financial advice -some say it is only for high net worth people while others believe the fees are too high. In recent years we have worked with the International Longevity Centre –UK (ILC-UK) to expose these myths and quantify the value of financial advice.
In What it's worth - Revisiting the value of financial advice data was analysed from the ONS’s Wealth and Assets survey which has tracked the wealth of thousands of people over two yearly “waves” since 2004-06 – we are currently on Wave 5. Through this we’ve been able to look at the financial outcomes of those who received advice and those who did not. Outcomes considered included the amount of accumulated pension wealth as well as net financial wealth – this includes current accounts, ISAs, life insurance products, shares etc. The probability of owning equity assets was also considered.
The results were startling with those who took financial advice being on average £47,706 better off than those who didn’t. This is split between a £30,991 boost in pension wealth and an increase of £16,715 in other financial assets.