Consumers have sounded a resounding yes regarding whether they need independent financial advic...
Consumers have sounded a resounding yes regarding whether they need independent financial advice.
This is the finding of the latest consumer research conducted by the Association of Independent Financial Advisers (AIFA) and IFA Promotion (IFAP) over September and October.
The research focussed on whether or not advice was important when making decisions about personal finance matters. Over two thirds of those questioned, who had purchased products which included life insurance, pension plans, mortgages, ISAs, equities, PEPs and unit trusts, had sought advice beforehand. This rose to 72% amongst 18-34 year olds and to 74% among homeowners. Encouragingly, 61% of those who took advice chose an IFA.
Paul Smee, AIFA director general, commented: "The research scotches any belief that investment products can be sold without the need for advice. The majority of those who had purchased financial services products sought advice first and most of them, I am pleased to say, sought that advice from an IFA."
Predictably, the appetite for advice varied between socio-economic groups. 80% of ABs had sought advice compared to 66% of CIC2s and 58% of DEs. Of those who had never taken any financial advice, 41% said that they would benefit from taking it in the future.
The participants also lauded the value of 'independent' advice. When asked what they wanted from an adviser, 79% stated they must have or would appreciate having the advice of an adviser independent of a large company such as a bank.
The research involved 500 people, with the average age at 42, all those surveyed had taken decisions about financial products and all had declared incomes of over £6,500 p.a.
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