Report: State of Flux – The Current State of the Financial Advice Market in the UK

A recent report titled ‘State of Flux’ has shed light on the current state of the financial advice market in the UK, revealing some concerning trends. According to the report, one in ten UK adults do not trust financial advisers, and less than half of UK adults have ever seen a financial adviser.

The report, a collaboration between Canada Life and financial services consultancy AKG, highlights the potential challenges and opportunities facing the financial advice industry. It suggests that the advice gap could widen before it has a chance to close, with 23% of UK adults stating they will not be swayed to seek financial advice, even if it was offered for free.

Reasons for not seeking financial advice include not having enough wealth to warrant seeing an adviser, not trusting financial advisers, and being afraid of pushy sales techniques. However, those who do engage with financial advisers on an ongoing basis value the relationship greatly, citing access to someone who understands their financial situation, peace of mind over financial decisions, and the knowledge that advisers are regulated as top factors.

Some consumers expressed regret for not seeking financial advice in the past, with worries about not having enough money for retirement, underestimating the impact of inflation, and losing money being the top three regrets. The report also indicates a need for more communication from advisers with their existing client base, with increased communication and updates being a top priority for clients.

Tom Evans, Managing Director, Retirement, at Canada Life, commented on the findings, emphasizing the importance of closing the advice gap and improving communication and marketing efforts within the industry. He highlighted the need to address issues of trust and the reluctance of some individuals to seek financial advice, calling for bold changes to the current status quo.

Overall, the ‘State of Flux’ report serves as a call to action for the financial advice industry to address these challenges and continue driving the conversation forward to better serve clients and improve trust in financial advisers.