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‘Too expensive’; ‘Getting advice is only for the wealthy’; Royal London research again reveals the need to debunk money myths

Home / News / ‘Too expensive’; ‘Getting advice is only for the wealthy’; Royal London research again reveals the need to debunk money myths

‘Too expensive’; ‘Getting advice is only for the wealthy’; Royal London research again reveals the need to debunk money myths

Lifetime news

Posted on: 22/06/2021

‘Getting financial advice is too expensive’.

That’s the main reason why people don’t seek help and advice on their finances, according to recent research.

The mutual life, pensions and investment company Royal London interviewed around 4,000 people and the research revealed a number of reasons why people do not engage with financial advisers.

The biggest reason given, by some distance, was that it was ‘too expensive’. The survey showed that 47% of people who hadn’t sought financial advice gave the prohibitive cost as the main barrier to contacting an adviser.

Yet that was despite 40% admitting to having no expectation or true knowledge of what an adviser might charge!

The ‘too expensive’ tag is just one of the myths that needs debunking. Another one is that ‘financial advice is only for the wealthy’.

According to the Royal London research, 15% of non-advised customers simply said that it ‘wasn’t for someone like me’, because they believed that their financial circumstances were too simple or that advice was only for far wealthier people.

While that may indeed be the case for some, the research also revealed that almost one in three people (31%), had more than £50,000 in investible assets.

Debunking the ‘too expensive’ and ‘advice is only for the wealthy’ myths, along with a number of others, is vital. It would help throw open the door to thousands more people who, through not having the required knowledge at their fingertips, are not getting the help, guidance and insight that would help them achieve what they want from their lives.

Here at Lifetime we offer a FREE financial planning video to get you started – and then provide advice for very reasonable rates. Delivering value is central to our approach (https://www.lifetime-fm.com/your-online-journey/).

Other reasons the Royal London research uncovered for not getting financial advice included:

  • I can look after my own money (35%)
  • I haven’t even thought about taking advice (22%)
  • I can’t trust a financial adviser (29%)
  • A financial adviser is only interested in selling me something (45%)
  • I’m too proud or embarrassed to talk to a finance professional about my situation (32%)

We passionately believe that financial guidance has never been as important as it is right now. By understanding your financial journey – and your own financial situation – you can take control of your future.

Interestingly, 32% of people in the Royal London survey did say that they would find financial guidance and advice more appealing if they could do everything digitally.

Well, Lifetime is endeavouring to bridge the advice gap by providing all generations with easy and secure access to full financial planning, together with a great digital experience.

Our digital financial adviser service, featuring our friendly guide flo, offers a pathway for people to take control of their finances and make better informed money choices, so they can achieve their own personal goals and ambitions.

Our secure online portal provides us with the platform to deliver a bespoke financial plan screen-to-screen, with the key human touch from our committed coaches.

As a profession we need to get the word out that ‘financial planning’ and ‘receiving expert financial advice’ is a GOOD THING!

For those of us who work in financial services, the benefits for people taking advice are very clear. But for those who don’t, much of it remains something of a mystery – and something to be very wary of, or kept away from.

We need to end that way of thinking – so that people can enjoy the real life benefits of financial planning.

 

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