Would you prefer to be £47000 better off in the next 10-years?
I cannot comprehend anyone saying no to this question and yet many people still do not seek Qualified, Independent Financial Advice in Mallorca or anywhere else for that matter.
The figure comes from a recent analysis by Royal London and the International Longevity Centre (ILC) in the UK.
The picture is most interesting for those people of more modest means who traditionally may believe “I do not have enough money to talk to a Financial Adviser” as the research showed that the impact of taking financial advice is more dramatic for those with less money to begin with.
The research categorises people with less money as “Just Getting By”. Of 4,100 people surveyed, the “Just Getting By” category had a 35% increase in their wealth as a result of having sought Qualified, Independent Financial Advice.
People with more money are categorised by the survey as “Affluent”. Seeking Financial Advice increased their wealth by 24%. Bearing in mind they have more money to begin with the increase is significant.
When Pensions are considered, the “Affluent” group increased their Pension Pot and therefore the income available from it by 11% and the “Just Getting By” group increased by 24%.
Sounds too good to be true?
The Royal London / International Longevity Centre survey is not the only source for how important Qualified, Independent Financial Advice can be in improving your wealth.
The UK government has undertaken a detailed analysis called “Wealth and Assets Survey”. This survey has been tracking thousands of people’s wealth in two yearly tranches since 2004-2006.
The resulting £47000 better off on average comprises £31,000 of pension and £16,000 extra in non-pension wealth, £47000 in total.
A big part of the significant increase in wealth from seeking Qualified, Independent Financial Advice came from an increased awareness of the risks and rewards of investing in Stock Market based assets and in the use of tax-efficient investment products. Individuals were 8% more likely to invest in equities once they had discussed this with their Financial Adviser and understood the risk vs reward.
Royal London stated that:
“It is incumbent on government, regulators, providers and the advice profession to work together to make sure that more people are sharing in this uplift.”
The International Longevity Centre said:
“It is a simple fact that those who take financial advice are more likely to be richer in retirement. But it is still the case that far too many people who take out investments and pensions do not use financial advice. And only a minority of the population has seen a financial adviser.”
Haven Financial Adviser’s View
Whilst we clearly have an axe to grind here and a significant vested interest in generating Fee Income from Financial Advice. The team at Haven Financial Advisers cannot believe that more people do not seek Qualified, Independent Financial Advice in Mallorca (and everywhere else for that matter).
It beggars belief that the increase in wealth demonstrated by the survey above is not embedded in the minds of every citizen. After all, who does not want to be £47000 better off?
Get in touch with one of our team today to see how the effect of Financial Advice can help secure your future.
