A recent research report shows that those who receive financial advice are on average around £40,000 better off than those who do not bother to get advice.
The research was carried out jointly by the International Longevity Centre and Royal London. The headline finding was that those who received financial advice between 2001 and 2007 had amassed significantly more liquid financial assets, including pension wealth, than those who didn’t by 2012-2014.
Called ‘The Value of Financial Advice’, the research looked at the impact of advice on two groups: the 'affluent', who are classed as wealthier and more likely to have degrees and be homeowners, and the 'just getting by', who are less wealthy, more likely to be single, who rent and have lower education levels.
It then compared the results between the ‘affluent but advised’ and ‘affluent non-advised’. The findings were that the 'affluent but advised' group amassed on average £12,363 (or 17%) more in liquid financial assets than the ‘affluent non-advised’ group, and £30,882 (16%) more in pension wealth, so an overall total of £43,245.
A similar split was made between the ‘just getting by but advised’ and the ‘just getting by non-advised’. Here the 'just getting by but advised' were found to accumulate on average £14,036 (39%) more in liquid financial assets than the ‘just getting by non-advised’, and £25,859 (21%) more in pension wealth, making an overall total of £39,895.
The research also found that those who received financial advice were more likely to invest in equity markets. It further showed that nine out of ten people that received advice were satisfied, with most of them acting on the recommendations of their financial adviser.
So whilst there is a cost to financial advice, according to this report the benefits of financial advice are manifest. Utilising the expertise of a qualified independent financial adviser, with his/her in-depth knowledge and research capabilities, can both save you time and money in the short-term and improve the prospects of enhancing your wealth in the long-term. An independent financial adviser will also be fully apprised of the latest taxation legislation and so can recommend the optimum tax incentivised options when possible and appropriate.
At Kellands Gloucester, we aim to provide our clients with ongoing financial advice based on their long-term goals, objectives and aspirations. As independent financial advisers, we can advise you on the whole range of investments and pensions available in the market. We are not restricted in choice.
So if you are planning your financial future, why not talk to us for some professional, quality financial advice? As the research shows, it could well pay dividends.