Serving the Teesside Business Community | 31
£ 40,000 richer
if you take financial advice
Paul Gibson ( pictured ), a director and financial planner at Stockton-based Active Chartered Financial Planners , talks about some interesting recent research by the International Longevity Centre-UK ...
Recently , we came across some research that is extremely close to our hearts , and is something that has been the pivotal purpose of Active ’ s being since inception .
People who take financial advice ( independent or restricted ) are on average £ 40,000 better off than those who do not , says research by the International Longevity Centre-UK ( ILC-UK ).
The research was based on 5,000 people and households across the United Kingdom .
The report ( supported by Royal London ) examined the impact of financial advice on two groups – the ‘ affluent ’ and the ‘ just getting by ’. Aptly named The Value of Financial Advice , the report found people who received financial advice between 2001- 2007 had accumulated “ significantly more ” liquid financial assets and pension wealth than their unadvised counterparts by 2014 .
The ‘ affluent ’ group was a wealthier subset of people who were more likely to have a degree , be part of a couple and be homeowners . The ‘ just getting by ’ group was made up of less wealthy people with lower levels of education , single , divorced or widowed and renting .
It found the ‘ affluent , advised ’ accumulated on average 17 % (£ 12,363 ) more in liquid financial assets than the ‘ affluent , nonadvised ’ group , and 16 % (£ 30,882 ) more in pension wealth , bringing the total to £ 43,245 . Meanwhile the ‘ just getting by , advised ’ accumulated on average 39 % (£ 14,036 ) more in liquid financial assets than the ‘ just getting by , non-advised ’ group , and 21 % (£ 25,859 ) more in pension wealth , bringing the total value added to £ 39,895 .
The report also found financial advice led to greater levels of saving and investment in the equity market , with the ‘ affluent , advised ’ group 6.7 % more likely to save and 9.7 % more likely to invest in the equity market than their non-advised peers .
Equally , the ‘ just getting by , advised ’ group were 9.7 % more likely to save and 10.8 % more likely to invest in the equity market than their non-advised counterparts .
Those who had received advice ( in the 2001-2007 period ) also had more pension income ( than their peers ) by 2014 , with the ‘ affluent , advised ’ group earning £ 880 more per year than the ‘ affluent , non-advised ’ group . The ‘ just getting by , advised ’ group earned £ 713 more than their counterparts the ‘ just getting by , non advised ’ group .
This research is extremely reassuring , not only to ourselves and our proposition , but , more importantly , to you . At Active we are continually seeking ways to ‘ add value ’ to our clients , and there comes no better way of doing so than in your own personal wealth .
The content of this piece is for information only and must not be considered as financial advice . We always recommend that you seek independent financial advice before making any financial decisions .