18 October 2012
Brits seek emotional comfort more than financial gain when taking financial advice




Research from Standard Life released today has found that while most UK adults seek out professional financial advice for a practical reason, such as a specific financial need or life event, what many actually value is the emotional reassurance the advice process provides them.

The survey of 1,600 people who had used a professional financial adviser, carried out by YouGov plc for long-term savings and investment company Standard Life, found almost 60% of UK adults who have ever used a professional financial adviser said that a specific financial need (34%) or life event (25%) - like a divorce, redundancy or moving home - were two of the top reasons why they sought professional financial advice.

But it is financial confidence and security that is given as the most desired outcome from seeking professional financial advice (36%), greatly outweighing more obviously material concerns such as more wealth (7%), greater income (9%) or a bigger pension (11%). Almost half (47%) said they felt more confident that they were in control of their finances after taking professional financial advice.

Consumers who have used a professional financial adviser rate 'reassurance that I am doing the right thing' as the most valuable aspect of the financial advice they were given (21%), with having a 'clear financial plan for the future' (13%) being considered the next most valuable.

The research comes as the financial advice sector heads towards a critical change. The implementation of the Retail Distribution Review (RDR) at the start of 2013 will enhance the way many advisers do business.

Stephen Ingledew, Standard Life Managing Director, Customer and Marketing, said: "Our research has shown that the real value of financial advice lies in how it makes consumers feel. It's clear for many people that reassurance and confidence are more important than more material considerations such as being demonstrably better off. In other words 'peace of mind' can be priceless.

"In the run up to the introduction of the RDR regime there has been a lot of focus on the cost of financial advice. But we believe the more fundamental impact will be that more and more people recognise the value of the professional services that financial advisers can provide in delivering this peace of mind. While many advisers have been moving away from product-based sales for some time to provide a holistic, long-term financial planning service, RDR will make this the industry standard as advisers will be required to clearly articulate their on-going services and client engagement. This can only be good news for the industry and the customer and we believe there will be a thriving advice profession in the post-RDR market for many years to come."

Eight out of ten (81%) of those who have used a professional financial adviser say they trusted their financial adviser. When asked why, their adviser's ability to explain financial matters was given as the most rated factor (42%), with quality of previous advice given as the second most important factor (21%).

Having 'great knowledge and expertise' was given by the most respondents as the best description of their professional financial adviser (19%), closely followed by 'he/she was interested in my financial situation' (18%) and 'he/she worked in my best interest rather than his or hers' (16%).

Standard Life has begun implementing the RDR rules this week with the introduction of adviser charging on new business into its key post-RDR product suite well ahead of the end-of-year deadline. To help consumers understand the changes the new legislation brings, Standard Life has produced an easy-to-read guide:The New Approach to Financial Advice (PDF, 1.79mb)

Ends



For further information, please contact:

For Standard Life:

Claire Burston
Direct: 0131 245 5078
Mobile: 07738 301 004
Email: claire_burston@standardlife.com



Matthew Pittam
Direct: 0131 245 4961
Mobile: 07515 298 642
Email: matthew_pittam@standardlife.com



Notes to Editors



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