Tom Evans, Managing Director, Retirement, at Canada Life, comments on closing the advice gap and the reluctance of many people to get financial advice, even if the advice was free.

Canada Life and financial services consultancy, AKG, have partnered to deliver a comprehensive new report, ‘State of Flux’, which considers the many factors that shape the current financial advice market, and the potential challenges and opportunities that may be posed for the future industry.

The report proposes that the advice gap could widen before there is any chance of it closing. Currently, according to the report’s findings, less than half (45%) of UK adults have ever seen a financial adviser. Perhaps more tellingly, over a fifth (23%) said they will not be swayed to get financial advice no matter the circumstances, and even assuming the advice was free.

Over one in five (21%) who are not engaged with advice, said they believe they do not have enough wealth to warrant seeing an adviser. Two additional indicative reasons to do with perception of advice are ‘not trusting financial advisers’ (11%) and ‘being afraid of pushy sales techniques’ (9%).

Tom Evans, Managing Director, Retirement, at Canada Life commented:

Closing the advice gap is clearly not a straightforward issue. In fact, we should be honest with ourselves and recognise there will always be an advice gap borne from people’s lack of willingness to engage, and advisers’ capacity to service.  But that shouldn’t mean as an industry we don’t try to do a better job of communicating and marketing both the benefits and value of financial advice. 

Clearly trust or a lack of it, is still a factor that continues to plague the advice market. The fact that one in five people would not see an adviser even if it was free, is quite shocking.

Why would a customer seek mortgage advice but be confident enough to choose the right path to retirement without advice? We need to be bold and challenge the current status quo, while also recognising that to serve a wider customer group, we need to embrace technology alongside attracting more advisers into the profession.

Full release: Over a fifth UK adults say they won’t seek finance advice, even if it was free

✉️ Elle McAtamney, Canada Life, 07913 568213 / elle.mcatamney@canadalife.co.uk