News
Pension savers who take advice are three times better off than non-advised
People who receive professional financial advice have nearly three times as much in pension savings as those who go it alone, a study reveals.
Advised savers have £246,000 on average in their pension pot compared to £95,000 for non-advised people, according to research by Aegon.
In addition, those who take advice reported total non-pension savings of £65,000 versus £32,000 for people who had not sought advice, and lower unsecured debt at £3,700 versus £6,400.
The survey of 10,000 people also found seeking financial advice improves people’s mindset when it comes to their finances.
Just 9 per cent of those without an adviser have a financial plan that stretches over 10 years, compared to 34 per cent of advised clients.
“Advisers have always been very focused on making sure they can boost their clients’ wealth. But the boost to mindset, while less well recognised, can be just as important to financial wellbeing,” said Steven Cameron, pensions director at Aegon.
“There is a growing awareness of the benefits of incorporating financial wellbeing into financial advice processes among financial advisers and planners.”
The report revealed that just 10 per cent of people who have never had any financial advice are fortunate to combine healthy finances and a positive money mindset, compared to 44 per cent of those who have an ongoing relationship with a financial adviser and 23 per cent who have occasionally used a financial adviser.
