More than half of people aged 50 to 79 years old have a lack of trust in financial service providers, research reveals.
According to a LiveMore survey, around 59% of this age group lack trust in financial service providers.
Women in this age bracket were slightly more likely to distrust financial services provider at 61%, which compares to 57% of men. In the 70 to 79-year-old age group, approximately 69% of those surveyed report a distrust of financial services firms.
The lender said that the figure was “particularly concerning” given the “ongoing scrutiny” the sector was facing following failures to meet Consumer Duty obligations identified in a Financial Conduct Authority review.
Problems resulting from financial insecurity
The company said within these numbers, there were “real individuals grappling with financial insecurity, often leading to postponed retirements, mental health issues, and concerns about affording basic necessities like heating their homes.
Leon Diamond, CEO and founder of LiveMore, said the “industry needs to recognise that these aren’t just statistics, they’re individuals whose lives are being adversely affected”.
He added that recent criticisms from the FCA “add another layer to this issue”, which found that some lifetime mortgage sales did not meet expected standards and 400 instances where promotions had to be amended or removed altogether.
“Such findings tarnish the industry’s reputation and further erode consumer trust. Consumer Duty, a set of guidelines aimed at ensuring good outcomes for customers, is at the heart of this issue. LiveMore stresses the importance of a full affordability assessment before making any mortgage decisions,” Diamond noted.
He said that the effects of compound interest can make lifetime mortgage products “very expensive” especially if held for many years and pointed to its own white paper on Consumer Duty and the later life lending sector as a key resource.
Diamond concluded: “As we look to the future, it is crucial that the 59% statistic falls sharply. We can achieve this if we all adhere to Consumer Duty guidelines and put the customer first.”
