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People who take financial advice on average “£40,000 better off”

It is easy for Financial Advisers to tell people that they will be better off if they take our advice, but it is not often that we can back it up with figures, as every case is different and we can’t make any guarantees. However, a new study from International Longevity Centre (ILC) has looked at data from the Wealth and Assets survey (the largest representative survey of individual and household assets in Great Britain), showing that those who took advice were, on average, £40,000 better off than their peers.

 ‘The Value of Financial Advice’ was produced by ILC, with the support of Royal London, and looked at two groups within the data: the ‘affluent’ (a wealthier subset also more likely to have degrees; be part of a couple; and be homeowners) and the ‘just getting by’ (who were less wealthy; more likely to have lower levels of education; be single, divorced or widowed; and be renting).

Their analysis showed that These increases were also split across liquid assets and pension wealth, as you can see in the table below:

Liquid Assets
(average increase)
Pension Wealth
(average increase)
Total
(average increase)

Affluent but advised group

£12,363 (17%)

£30,882 (16%)

£43,245 (16.5%)

Just getting by but advised group £14,036 (39%) £25,859 (21%)

£39,895 (30%)

The report also shows that people who took financial advice during the period of research were also earning more in pension income – an additional £880 (16%) for the ‘affluent but advised’ group and £713 (19%) more for the ‘just getting by but advised’ group.

While this report gives a clear demonstration of the value of financial advice for the average person, it is worth noting that in financial planning there is no such thing as an ‘average’ customer. When putting together a financial plan, a good adviser will consider your unique circumstances and goals, and put together a recommendation that suits your needs. While they can’t make any promises (particularly with investments), they can help you to understand what you are likely to achieve in both the long-term and short-term.