Financial advice sees £47K uplift in wealth over a decade
At Bright Future Financial we believe effective financial advice can be life changing and transformative while new research from Royal London and the International Longevity Centre (ILC) has shown receiving financial advice provides an average £47,000 uplift in wealth over a decade.
The findings were revealed during a keynote speech from Steve Webb, Director of Policy for Royal London and former Pensions Minister, at the Personal Finance Society's 2019 Annual Conference on 28th November at the ICC in Birmingham.
The findings come from detailed analysis of the government’s Wealth and Assets Survey which has tracked the wealth of thousands of people over two yearly waves since 2004-06. The ‘advice effect’ research showed an extra £31,000 of pension wealth and over £16,000 extra in non-pension financial wealth.
The report also indicates people who foster an ongoing relationship with a financial adviser are also likely to be financially better off than those who receive one-off advice. Those who reported receiving advice at both time points in the analysis had average pension wealth nearly 50% higher than those who were only advised once.
Steve Webb said: "This research uses the latest statistical methods to identify a pure ‘advice effect' and it is strikingly large. If financial advice can add £40,000 to your wealth over a decade compared with not taking advice, it is incumbent on government, regulators, providers and the advice profession to work together to make sure that more people are sharing in this uplift."
ILC director David Sinclair said it was a "simple fact" that those who take financial advice are more likely to be richer in retirement. He added: "But it is still the case that far too many people who take out investments and pensions do not use financial advice. And only a minority of the population has seen a financial adviser."
David Boyce, principal financial adviser at Bright Future Financial, attended the Personal Finance Society's 2019 Annual Conference and commented “It’s encouraging to hear that once again, independent research has confirmed the monetary value of receiving financial advice.”
There were in excess of 40 presentations that took place during the conference, our focus was on attending those that would add value to our business and ensure that we maintain and improve further our high level of client service in the ever changing world of financial advice.
Whilst good financial advice should improve our client's financial situation, ensuring that our clients are able to spend and enjoy their money is just as important and we will now be enhancing our initial meeting and review meetings to implement some of the outstanding ideas discussed on the day.
David Boyce commented “Everyone has a different vision of their ideal future, which is why we work so hard to understand the life goals our clients are aiming for. We get to know our client’s aspirations so we can build a unique financial plan that aims to deliver the bright future they have in mind. We look beyond the numbers and create conditions that engage and empower our clients to make decisions that align with what matters to them most.”
Bright Future Financial can provide you with expert financial advice that will help you preserve and grow your wealth. We're dedicated to improving the financial prosperity of you and your family. Please contact us for a free initial consultation.
Steve Webb delivering his keynote speech
