Financial

Is financial advice too expensive?

Author: Emma Lunn

May 11, 2021

Cost, trust and value are emphasized as the main reasons people do not receive financial advice.

The “Affordable Advice Gap” is where people are willing to pay for advice, but think it’s too expensive. A study by online financial advice service OpenMoney found that the gap was at a record level. From 5.3 million last year, an estimated 6 million British people will pay for advice if the cost is low.

OpenMoney’s Third Annual Advice Gap Report, The Future of Financial Advice: Overcoming the Advice GapLet’s take a closer look at why some people are willing to get financial advice and why others don’t.

Among those who haven’t paid advice in the last two years and are unlikely to do so in the future, women have been found to be more cost-conscious than men. One-fifth (20%) of women say they are willing to pay for advice if the cost is low compared to 14% of men.

Young people are the least worried about costs, with only 11% of 18-24 years recognizing costs as an issue, compared to 20% of 35-44 years.

Cost remains an important concern, but trust and value become more important when it comes to encouraging people to pay for advice.

One-third (33%) of respondents who are unlikely to consider paying financial advice and haven’t done so in the last two years said they need to be confident that advice can save money. An additional third (32%) need to make sure that the advice is reliable.

Anthony Morrow, co-founder of OpenMoney, said: People want to be confident that getting advice will make a difference in their finances and save money overall.

“Trust has long been a problem in the advisory department. Some companies’ memory of sales and fee-driven culture and excessive reliance on complex products and jargon are people’s views on all advisors. Therefore, regaining people’s confidence in the benefits of financial advice is important to bridging the advice gap. ”

Is financial advice too expensive?

Source link Is financial advice too expensive?

The “Affordable Advice Gap” is where people are willing to pay for advice, but think it’s too expensive. A study by online financial advice service OpenMoney found that the gap was at a record level. From 5.3 million last year, an estimated 6 million British people will pay for advice if the cost is low. OpenMoney’s Third Annual Advice Gap Report, The Future of Financial Advice: Overcoming the Advice GapLet’s take a closer look at why some people are willing to get financial advice and why others don’t. Among those who haven’t paid advice in the last two years and are unlikely to do so in the future, women have been found to be more cost-conscious than men. One-fifth (20%) of women say they are willing to pay for advice if the cost is low compared to 14% of men. Young people are the least worried about costs, with only 11% of 18-24 years recognizing costs as an issue, compared to 20% of 35-44 years. Cost remains an important concern, but trust and value become more important when it comes to encouraging people to pay for advice. One-third (33%) of respondents who are unlikely to consider paying financial advice and haven’t done so in the last two years said they need to be confident that advice can save money. An additional third (32%) need to make sure that the advice is reliable. Anthony Morrow, co-founder of OpenMoney, said: People want to be confident that getting advice will make a difference in their finances and save money overall. “Trust has long been a problem in the advisory department. Some companies’ memory of sales and fee-driven culture and excessive reliance on complex products and jargon are people’s views on all advisors. Therefore, regaining people’s confidence in the benefits of financial advice is important to bridging the advice gap. ”

Source: https://londonnewstime.com/is-financial-advice-too-expensive/536473/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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