Investors are increasingly turning to professional advisors before making a financial decision, a new survey has found.
Between October 2016 and October 2017, ten per cent of people spoke regularly with a financial advisor, a 25 per cent increase on the previous 12-month period.
The survey was commissioned by Aegon and found that although more and more investors are using financial advisors, the vast majority still prefer to go it alone.
Almost half (47 per cent) of those surveyed said that they make their own financial decisions, while a further 40 per cent said that they make financial decisions jointly with their partner or spouse.
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“The increase in the number of people speaking to a financial adviser is encouraging, with 25 per cent more seeking advice than in 2016,” said Steven Cameron, Aegon’s pension Director.
“However, overall, take-up of financial advice remains worryingly low with around 1 in 10 people seeking advice.
“Since last year, the numbers accessing their pensions flexibly through pension freedoms has continued to grow. Making the right decision on your retirement finances is hugely important and really should be done only with the help of a professional adviser.”
Cameron added that a “worrying” 32 per cent of those going into income drawdown were not using an advisor.
“Both the regulator and the government are keen to make advice and guidance more accessible to more people, and their Financial Advice Market review led to a range of initiatives,” he said.
“However, while advisers support the aims of these measures, Aegon research shows they are sceptical these are making a difference in practice.
“If people are unsure if they need advice, they might first make use of free sources of guidance available, for example from Pension Wise on pension freedoms. Providers and some employers can also provide basic information. But for the more important or difficult decisions people should seriously consider paying for financial advice. In many cases, the benefits of getting things right can far outweigh the costs. It might be money well spent to ensure they are doing the best they can for their financial futures.”