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The Financial Future Consumer Attitudes Towards Financial Planning and Themes for 2018

The Adviser’s View 52% of respondents currently do not have a retirement plan in place compared with 37% without a plan in 2010. You may ask how is this possible given the recent introduction of automatic enrolment workplace pensions. If we look at the ‘at retirement’ financial landscape over the last seven years, there has been an increase in activity within this market due to the baby boomer generation reaching retirement age. These people represent the majority of the saved wealth within the UK and as they move into retirement, the statistic shows the generation behind do not have sufficient plans in place. It is estimated that there is an average of £400 billion to be passed from grandparents to the younger generation over the next 10 years. Which suggests there has never been a greater need for financial advice. Some people may argue that is it more difficult now to save given the difference in house price inflation over the last 30 years compared to the rate at which wages have increased over the same period. I feel there are other factors to this ‘advice gap’ such as the avenues to enable financial advice to the mass market through an affordable and profitable channel. We need to be able to engage this market so that as financial planners, we can help create the wealth needed. Otherwise, we are creating a generation that cannot afford to retire. The survey results also show that fewer consumers had reviewed the cost or performance of their financial investments over 12 months in 2017 than 2010. It seems likely that at some point the majority of these individuals received financial advice otherwise they would not have been in a position to build up or make an investment. What is most interesting is that somewhere along the line, these individuals have stopped engaging with an adviser. The question is why? There are certainly fewer avenues to engage with financial advice in 2017 than in 2010. One of the largest avenues to consumers was advice provided by their bank which along with life companies before them, offered financial advice and financial products to their consumers. Since 2010, due to either cost, regulation or the banning of commissions, these avenues have closed down. Now that this easy access to advice has disappeared, unsurprisingly the level of people engaging with a financial adviser has reduced over the last seven years. As financial planners, we need to be able to market our services better. We need to be able to show how we add value to our clients and the tremendous job we do looking after our existing clients. I truly believe that all investors need on-going advice. As I say to my clients, your money is too hard earned to be ignored.

Peter Savage Chartered Financial Planner Peter Savage is a Chartered Financial Planner and has been awarded the Chartered MCSI qualification through the Chartered Institute for Securities & Investment Institute. Peter is a business principal at Fairstone Financial Management NI (previously First Financial Management), the business that he set up with colleague, Sean Larkin in 2007. He started work in financial services in 1998 when he worked for Standard Life, primarily within their group pension department. Peter then took up a post with Barclays within their Wealth Management division, based in London before moving to Belfast. Peter works predominantly within the investment planning and pre and post-retirement planning division and also advises the firm’s corporate clients on their employee benefit and group pension requirements. |


The Financial Future  
The Financial Future  

Consumer Attitudes Towards Financial Planning and Themes for 2018.