ABI: Half of consumers plan to shun fees

Out of a survey of 2,500 people, more than half said they were unlikely to be prepared to pay for financial advice.

A third thought such advice would be worth under £300, less than half the current average cost of £670 to provide the service, the ABI says.

The findings highlight the pressure on simplified advice to provide a low cost way for consumers to access financial advice, says the Association.

Helen White, the ABI's acting director of life and savings, says: "The results send us a strong message about what consumers need: to fill the gap between paying for full financial advice and having none.

"For the RDR reforms to deliver good outcomes for consumers and the industry we need to convince sceptical consumers full advice is worth paying for, and also come up with a model of simplified advice for those consumers who cannot afford or do not need full financial advice."

Research published last month by threesixty suggested three out of five fee-charging IFAs bill clients between £150 and £200 an hour for advice.

 

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