The financial advice market has steadied itself following the introduction of the Retail Distribution Review (RDR) in 2012, and the number of advisers and advisory firms operating in the industry has stayed relatively unchanged in 2014. The challenge for remaining advisers in the industry is to address the advice gap, which has been exacerbated due to rising regulatory costs and changes in the market. Pensions freedom is, arguably, the biggest change the retirement industry has seen in a generation, and the need for expert advice is greater than ever.
Free online tools and platforms have gained traction in the market, as many consumers become more digitally engaged in the search for sources of information and advice. Many consumers nowadays are seeking broader money management tips rather than advice on financial products, and it is crucial that the advice industry evolves with the new requirements of the market in order to foster better savings habits among consumers and future generations.
This report investigates consumer attitudes towards financial advice, examining their current use of advice, and their likeliness to look for advice in the future across a range of different financial products. The research also investigates how people prefer to pay for a financial adviser as well as how confident people are in managing various aspects of their finances themselves.
Notes on definitions
Throughout the report, when financial adviser is referred to, this relates to financial advisers who do not operate within a bank or building society. When referring to advisers who do operate within a bank or building society, this will be referenced accordingly.
Note on consumer research
This report includes consumer research carried out exclusively for Mintel by GMI. The survey fieldwork was carried out in February 2015 and involved questioning 1,952 internet users aged 18+.
In addition to quantitative consumer research, Mintel has also conducted an online discussion group among a demographically mixed group of consumers. This discussion was asynchronous (ie not run in real time), functioning like a blog or bulletin board with questions remaining posted for a pre-determined period of time. This method allows participants to respond reflectively, at their leisure or log off to think about any issues raised and return later to respond. Participants were recruited from Toluna’s online consumer panel.
