Why advice matters
Making your money work harder and giving you greater control of your financial future
Advice can help make a big difference to your finances, whether that’s through ensuring you’re making the most of your tax allowances, choosing different investments or finding the best way to access your pension.
Making your money work harder
Research by the International Longevity Centre (ILC-UK)* has shown that people who take advice increased their wealth by a staggering £47,000 over ten years. The study was carried out over a long timeframe to get an extensive view of people’s finances and measure the long-term impact.
This research also helps break down the misconception that advice is only for the wealthy. The study was carried out with two groups, those that considered themselves ‘affluent’ and those that considered themselves ‘just getting by’.
Those in the ‘just getting by’ group actually saw a greater positive impact from financial advice than the affluent group.
The power of advice
Financial Advice can also create positive emotional benefits. Another study done by the ILC-UK** found that those who have taken advice described themselves as having:
- Improved financial literacy and capability through interactions with their financial adviser
- Greater control of their financial future, including a sense of relief that their finances are being reviewed regularly by an expert
- Greater reassurance, knowing that they’re ‘doing the right thing’ by consulting an expert
- A boost in confidence, knowing that they have a clear, detailed plan of how they will achieve their long-term goals, particularly accessing their pension.
*ILC-UK, (International Longevity Centre -UK) ‘The value of advice’ report, 2017. The research explored the impact of financial advice between 2001-2006 on financial outcomes in 2014-2016. Due to the fact this study was carried out over such a long period, it is the latest data available.
** ILC-UK, (International Longevity Centre -UK) ‘Peace of mind: Understanding the non-financial benefits of financial advice’ report 2020.
