We’re living longer, and older people are set to make up a substantially greater proportion of the population in the years ahead.
Increased longevity presents challenges as well as opportunities. Thankfully, we don’t have to overcome these all on our own. Advice from those around us, as well as from professionals, can play a key role in helping us maintain the control that leads to greater life satisfaction and equips us for later life.
Those closest to us are the first port of call for financial advice. They’re the ‘go to’ for just under a third (30%). Other popular sources include the internet (26%) and well-known financial experts such as Martin Lewis (25%).
Sources of Advice | Percentage |
---|---|
Family | 30% |
Google / the internet | 26% |
Martin Lewis / famous financial experts | 25% |
IFA / Financial Consultant | 23% |
Bank or Building Society adviser | 22% |
Friends | 19% |
Solicitor | 16% |
Accountant | 11% |
Newspapers / magazines | 10% |
Mortgage Broker | 10% |
Insurance Broker | 6% |
Stockbroker | 4% |
Other | 1% |
Stockbroker | 4% |
I don‘t seek advice from others | 14% |
Source: Sources of advice ever used for financial matters Base: UK Population 3,400
Just over half (54%) of the UK population have ever used professional advice, which here includes Independent Financial Advisers (IFAs), bank or building society advisers, solicitors, accountants, mortgage brokers, insurance brokers or stockbrokers.*
Under a quarter (23%) have used an IFA. The propensity to use professional advice, and an IFA specifically, closely correlates with age: those 55 years and over are more likely to use both than the under 55 age groups.
It is encouraging that half (52%) of those under 35 can see the benefit of accessing professional financial advice (higher than for any other age group). However, four in ten (42% – the highest of any age group) don’t know where to turn for advice, suggesting a need for better access to information and reassurance.
Three-quarters (75%) of those who use an IFA are satisfied with their life, compared with six in 10 (61%) of those who don't use an IFA.
Further, almost six in 10 (58%) who use an IFA feel in control, compared to just over two-fifths (44%) of those who don't use an IFA.
We appreciate that both using an IFA and feeling happier is moderated by age and affluence. This is an interesting question for the provision of intergenerational advice. For example, might we engage the advice community to consider how it offers advice to the next generation of its own clients?
In fact, the impact of using an IFA on life satisfaction and feeling in control is most pronounced amongst those aged under 35 years, who have the least experience of life.
Those who have sought financial advice are also more likely to have taken action to prepare for later life and the transition of wealth by making a will or setting up a power of attorney. Advice from a financial professional was the main trigger for those who have set up a power of attorney.
While overall 15% have sought professional advice on inheritance/intergenerational wealth planning, those who have consulted a financial adviser are much more likely to have discussed their intentions with family members: two thirds of those who use an IFA have discussed their intentions, compared with 44% who do not have an IFA.
Those who use an IFA are more prepared for all later life eventualities than those who do not, including funding their long-term care, financing their retirement and making sure their loved ones are looked after once they die.
These figures highlight the notable benefits of using professional advice. Expert guidance is often a starting point for wider discussions with those closest to us.
Our research suggests many more people could benefit from doing this to prepare for later life and facilitate the transfer of wealth which can include equity release products such as the flexible lifetime mortgage.
Discover more insights in our full Life 100+ Report. This can be accessed via our website, here.
*Professional advice (Net: IFA, Bank or building Society adviser, Solicitor, Accountant, Mortgage Broker, Insurance Broker or Stockbroker)