A study has found that almost 6m British adults would be willing to pay for financial advice if it was more affordable.
As both households and businesses in the UK face a debt crisis, the results of a study suggest that many people are not getting access to the financial advice they require.
The report, titled ‘The UK advice gap: are consumer needs for advice and guidance being met?’ reviewed the country’s wealth, debt and financial advice services. The study was carried out by online financial advice service OpenMoney in conjunction with YouGov and reviewed the four advice gaps as identified by Citizens Advice in 2015.
Here are the key findings from the survey:
- The number of people falling into three out of the four advice gaps has grown since they were first identified in 2015.
- Up to 5.8m Brits would pay for financial advice if it was cheaper.
- Up to 19.8m people who feel they would benefit from free financial advice have not received it in the last two years.
- Up to 15.2m people do not know where to get public financial advice.
New digital services have been introduced since the advice gaps were identified in 2015, but OpenMoney’s report suggests that these robo-advisers are generally providing guidance rather than the personalised advice that many people require.
With one third of people surveyed finding managing their money challenging, just under half running out of money before their next pay day, and one third of respondents turning to short-term credit, it’s clear that a large portion of the population could benefit from financial management and planning advice.
To prevent the country’s debt crisis from further growing, financial advice and guidance services must be developed and promoted to meet consumer needs and increase awareness of what help is available.