Unbiased, an AI-enabled financial advice platform, has released new research revealing the impact of financial advice.
A survey of over 1,000 UK consumers who matched with a financial adviser through Unbiased found that, while the initial step can be daunting, 85% felt more confident about their financial future after speaking with an adviser.
When asked how working with a financial adviser had impacted their confidence in their financial future, 46% said they felt somewhat more confident, and 39% felt much more confident, while 13% said their confidence level had not changed, and 2% felt less confident.
Three in four people (76%) stated they are satisfied with the benefits they receive from financial advice, with over 90% stating that working with an adviser has improved their financial well-being; this improvement ranged from 'significantly' at 53% to ‘moderately’ or 'slightly' at 41%.
The research highlights that the rewards of advice go far beyond the numbers. The top benefits consumers reported after getting professional advice included increased peace of mind about their financial future (65%), a better understanding of their finances and investments (51%), a clearer path to achieving their financial goals (46%), and a more organised and efficient financial plan (40%).
A quarter of consumers also listed improved confidence in making financial decisions as a top benefit, and 12% mentioned better-than-expected investment returns.
The research also looks at what people pay for expert financial advice. For ongoing management, the most common fee structure is ‘percentage assets under management (AUM)’, where the amount you are charged is based on the sum of the assets your financial adviser manages. The average AUM fee reported by consumers was 1%.
The research shows that the initial cost can be a barrier. 29% of those who did not proceed with their matched adviser cited the quoted high fees as the primary reason. However, for those who proceed with their matched adviser, their perspective changes.
The majority (69%) viewed the cost of advice as a 'reasonable cost or necessary expense' for the value received. Just 8% of respondents stated they thought of the fees they pay as 'a high cost that I regularly question.'
Tim Grimsditch, managing director of Unbiased, said: "Our research confirms what we at Unbiased have long known: getting financial advice is a worthwhile experience.
"The data is clear, people feel more confident, gain peace of mind, and see a real improvement in their financial well-being. It’s an investment that pays dividends in every sense of the word.
"We need to directly address the initial hurdle: the perceived cost of advice. While some people are understandably hesitant about the fee, the key takeaway is that the vast majority who proceed find the value they receive, in the form of financial clarity and a more secure future, far outweighs the initial investment.
"This research should give anyone considering advice the confidence to move forward. The evidence shows it’s one of the most valuable steps you can take for your long-term financial health."
