What's the real-life value of financial advice?

13 September 2024

4 minutes

SJP's largest consumer survey, the Real Life Advice Report carried out by Opinium, examines the UK population's relationship with financial advice.  

At a glance

• A third (33%) don’t think advice is relevant to them, while others aren’t aware of its benefits or don’t believe it’s the right time to take advice (8% and 7% respectively)
• 24.6 million people have never accessed any kind of financial advice or guidance
• Among those who have received advice or guidance, 84% say they benefitted mentally or emotionally
• The findings reveal that financial advice can - and does - transform lives.

Mental wellbeing, better financial resilience and improved quality of life are the three key benefits of taking professional financial advice or broader financial guidance, a new study by St. James's Place (SJP) reveals.

Released today, the Real Life Advice Report - our largest consumer survey to date - contains real-life stories and the results from just under 12,000 respondents exploring the value of financial advice, our attitudes surrounding it, and its future. Both those who use financial advice, and those who don’t, were included in this extensive research.

The findings clearly show that financial advice can – and does – transform lives. But the report also highlights the perceived barriers that hold back more than half the population from seeking advice.

What is the Real Life Advice Report?

The Real Life Advice Report, which will be released in a series of chapters, seeks to determine the impact of financial advice and guidance on individuals and families across the UK. Interviews were conducted by Opinium on behalf of SJP and took place between May and August 2024¹.

Key Findings

• 84% say they have benefitted mentally or emotionally as a direct result of taking financial advice. This increases to 92% for those who receive ongoing advice. 25% of respondents reported feeling less vulnerable, stressed or worried.
• 65% say it has improved their quality of life in some way, rising to 75% for those who receive ongoing advice. 25% were able to save more, afford a holiday or pay for home improvements.
• 47% of those taking advice say it's enabled them to reach a specific life goal like paying off a mortgage or upsizing, or manage one of life's hurdles such as a job loss or loss of a partner.
• 75% would recommend financial advice to others, rising to 86% amongst those receiving ongoing advice.

Perceived barriers are holding many back from seeking advice

From those who take occasional or ongoing financial advice, the response was overwhelmingly positive, with 84% of respondents saying it had significantly benefitted their emotional and mental health.  

Nevertheless, the report warns there are barriers stopping more than half the population accessing financial advice.

Respondents said they felt that financial advice ‘isn’t for people like me’, is only for the very wealthy, or those in financial difficulties.

One third (33%) thought their personal finances were ‘too simple’ to benefit from advice, and nearly 1 in 10 (8%, rising to 14% for 18 to 34-year-olds) were not aware of the potential benefits, or the ongoing value of advice.

Taking action to support change

At SJP, we exist to help people find the right kind of advice at the right time helping people achieve their life goals.

This is why we fully support the regulatory changes under consideration in the Financial Conduct Authority’s (FCA) Advice Guidance Boundary Review. These changes will help make simple, targeted financial guidance or advice accessible, affordable and available to all.

We want to do all we can to break down those perceived barriers and close the advice gap. That’s why we remain committed to training new advisers and nurturing talent at the St. James's Place Financial Adviser Academy.

We're not underestimating the scale of the challenge. But we are excited to be part of these important changes.

In the report’s foreword, Mark FitzPatrick, CEO of SJP makes it clear. “Many more people’s lives and futures could be improved simply by getting access to the support they need.“

“The findings of this report confirm that sound financial advice can transform lives. We have lots more to do to help more people get the advice they deserve.“

“But when we succeed, then individuals, families and our wider society as a whole will all reap the benefits.”

The Real Life Advice Report Chapter 1: Why advice matters. Read Chapter 1 here.

Coming soon in Chapter 2 of SJP’s Real Life Advice Report

Focussing on the advice journey, this chapter will highlight the role and value of financial advice at each step of our lives. This will be released in October 2024.

We can help you

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

Source

¹ The Real Life Advice Report was commissioned by St. James's Place. Opinium surveyed 12,000 UK adults between May and August 2024. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.

We've looked at the impact of all forms of professional financial advice and guidance - from that offered by a financial advice firm or individual (including a wealth manager), an independent financial adviser (IFA), a qualified financial planner, to 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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