Financial advice: is it worth it? 

Consulting with a financial adviser could result, on average, in a boost of over £40,000 to your savings and investments, financial assets and pension

For anyone reviewing their personal finances, consulting an impartial financial adviser before making any decisions – if you are able to do so – is shown to be extremely valuable. You might have already consulted a financial adviser before arranging your pension with us.

Why is impartial financial advice so important?

Before making any decisions on current and future finances, there are many increasingly complex considerations that need to be looked at to help ensure the best possible outcome for you.

These crucial decisions can be daunting and the list of questions can be extensive, but it’s important if you want to achieve the best outcome. Some of the questions that a financial adviser might ask you are:

• Are all your financial aspects and options being considered?
  
• Is your focus on short-term goals rather than long-term needs?
  
• What about the tax implications?
  
• Do your investment choices match the level of risk you’re willing to accept?
  
• Will you have a level of income that is sustainable throughout your retirement?
  

If you’re tempted to make these important decisions based on your own research, without financial advice, it might not be as simple as it appears. It can be a case of ‘You don’t know what you don’t know’. This is where consulting an impartial financial adviser, with specialised knowledge on the wider financial planning aspects, and who is able to ask the ‘right’ questions before any decisions are made, is invaluable.

Boosting your finances

This value was proven as part of independent research conducted by the International Longevity Centre-UK (ILC-UK) and supported by Royal London on the Value of financial advice. This showed the potential improvement in long-term savings possible for millions of households in the UK who used a financial adviser. They achieved better outcomes than those who didn’t use an adviser.

The report analysed data in the ONS Wealth and Assets Survey on the wealth of individuals and their household assets in Great Britain. It found that those who received financial advice from 2001/07 had accumulated significantly greater levels of savings and investments, financial assets and pension wealth than an equivalent group who did not receive advice, over the period to 2012/14.

A group who used an adviser accumulated, on average, 17% more (£12,363) in liquid financial assets than the non-advised group and 16% more (£30,882) in pension wealth. This amounts to over £40,000 more in overall wealth by using a financial adviser.

The research also showed that nine in ten people were satisfied with the advice they received, and the clear majority decided to go with their adviser’s recommendation.

The research importantly shows that financial advice is not just for those that are better off, but can make a real difference to the quality of life in retirement for everyone. Financial advisers are crucial in connecting people with the right products for them and key to delivering better outcomes and experiences – as well as providing very real returns.

It’s a good idea to get in touch with your financial adviser to help you review your personal finances. If you need to find a financial adviser, then Unbiased or Money Advice Service websites may help, and The Pensions Advisory Service is able to help with general queries on pensions.