Financial advice is a matter of trust and understanding, as much as money

25 October 2024

4 minutes

Chapter 3 of SJP's Real Life Advice Report conducted by Opinium on our behalf.¹ The Advice Relationship confirms that consumers value a trusted, longstanding relationship with their adviser above all else.  

At a glance

• 62% have never switched financial adviser, rising to 74% of those aged 55 or over.
• A strong relationship is the principal reason why people stay with the same financial adviser.
• Over 86% of those who already receive ongoing advice would recommend it to family and friends.
• Longstanding financial advice relationships build stronger financial futures, offer support at major life moments and improve quality of life.

Once we start, we stay. Newly-released, Chapter three of SJP’s Real Life Advice Report is a ringing endorsement of longstanding client-adviser relationships, with the average professional advice relationship lasting seven years. Loyalty and satisfaction appear to increase as the years go by – nearly a third of the over-55s have had the same adviser for 16 years or more.

More than 62% of respondents to SJP’s largest ever consumer survey have never switched adviser. And almost one in three of them cite their relationship with their adviser as their main reason for staying. This chapter specifically addresses why people continue to take advice and why they stay loyal to the same adviser, often for decades.

The results reveal real life relationships are built on a foundation of trust understanding, and financial satisfaction.  

Key findings

• Over 62% of those who receive regulated financial advice have had the same adviser since the start. This rises to nearly three quarters (74%) of those aged 55 and over.
• A typical relationship with a financial adviser lasts seven years; rising to a decade amongst the over-55s.
• 86% of those currently receiving advice from a professional financial adviser would recommend financial advice to family and friends
• 1 in 3 (35%) said they stayed because they were happy with the advice and financial returns their current adviser had delivered (35%) and were confident their adviser understood their financial situation (34%).

Loyal, often lifelong relationships

One in three individuals surveyed said they were happy with the financial returns their adviser had helped deliver, and particularly valued their understanding of their personal circumstances and life events.

Ongoing financial advice has helped more than one in 10 of us with major life goals or moments, such as getting on the property ladder (13%) or navigating difficult periods like divorce or bereavement (13%). Others have been able to pass on money to their children or loved ones (19%).

”It’s the relationship that drives the impact.” Andy Payne, Head of the St. James's Place Financial Adviser Academy

Of those currently receiving advice, three-quarters said they would recommend it to family and friends. That figure rises to 86% of those in the older age group.

“Financial advice is about much more than numbers on a page or graphs on a screen,” says Andy Payne, Head of the St. James's Place Financial Adviser Academy who authors this chapter. “It’s the relationship that drives this impact.”

“Financial advice is about building deep, meaningful relationships, and as our research shows, these can last many years and span generations. Whether you’re navigating the early stages of wealth creation, planning for retirement, or managing an unexpected life change, having a trusted adviser by your side can make all the difference.“

What is the Real Life Advice Report?

Opinium surveyed just under 12,000 UK adults nationwide in two polls between May and August 2024 on behalf of SJP. The Report – our largest consumer survey to date – is based on interviews and real life stories exploring the value of financial advice, our attitudes surrounding it, and its future. The results of this chapter centres exclusively on those individuals who are already taking financial advice or guidance.

Chapter 4 of SJP’s Real Life Advice Report - coming soon

Chapter 4: Advice and Vulnerability, will be released in November 2024.

You can read The Real Life Advice Report Chapter 1, 2 and 3 here.

We can help you

Get in touch to find out more about how financial advice can benefit you.

Source

¹The Real Life Advice Report was commissioned by St. James's Place. Opinium surveyed 12,000 UK adults between May and August 2024. Quantative data referenced is sourced from the first poll which had a total sample of 7,995 respondents. Survey included those aged 18-34 (1,940), aged 35-54 (2,654) & aged 55 and over (3,401).

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.

We have looked at the impact of all forms of financial advice and guidance. From professional advice received through a financial advice firm or individual including a wealth manager, an Independent Financial Adviser (IFA), a qualified financial planner, and advice received through a bank and building society. We have also looked more broadly at understanding the impact of the help people receive through organisations such as Citizen’s Advice, Pension Wise and others.

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