Friends and family appear to be the top influencers when it comes to financial advice says Aviva concerning UK consumers.
Nearly three-quarters (70%) of 18-24 year olds would first turn to friends and family for financial advice rather than consulting a professional adviser, while only a quarter (24%) of over-65s would do the same.
Over half (52%) of 18-24 year olds said they’d use the internet for information about their finances, compared to less than a quarter (23%) of over-65s. However, 28% of over-65s would make an IFA their first port of call for financial advice.
With the Retail Distribution Review (RDR) less than two years away, the Aviva Value of Financial Advice report examines consumers’ attitudes towards their finances and the value they place on professional financial advice.
The report found there is strong evidence to show that those who do use an IFA place great value on the advice they receive. Some 95% of people who consult an IFA reported that they had benefited from the experience and felt more comfortable with how they managed their money (44%), and more confident that they were making the right decisions (42%).
Adviser Charging Guide – helping advisers communicate the value of advice to clients
The publication of the report from Aviva coincides with the launch of a new guide aimed at financial advisers preparing to make the transition from commission to adviser charging. Adviser charging will become compulsory from 2013 as part of the Retail Distribution Review. The guide, available on the Aviva for Advisers website, gives advisers useful information about successfully taking their clients through changes to the way they will pay for financial advice.
Graham Boffey, distribution director, Aviva, UK Life said:
“It’s a concern that so many people are relying on friends or family and the internet for financial advice, and that they are not aware of what an IFA could offer them. But it’s also quite evident that those people who take professional financial advice find it adds value and gives them confidence in their decisions.
“Aviva recognises the value of professional financial advice and is committed to highlighting the value that advisers deliver to consumers. Creating a deeper understanding of the benefits to consumers and the value of professional advice is increasingly important as we approach the implementation of the RDR late next year.
“Our new guide is intended to help advisers successfully make the transition to the new way of charging for financial advice required by RDR, and along with our Financial Adviser Academy and Future Adviser Programme, is part of our commitment to supporting advisers through the changes and challenges of the next few years.”
Source : Aviva
