The national survey found half of them believe their savings and investments are too small to interest financial advisers while one in five blames the withdrawal of financial advice services on the High Street and financial advisers closing businesses.
There is growing demand and a need for advice – the research reveals 47% of people are deterred from investing in equity-based products due to a lack of knowledge. And 35% of savers are put off saving due to the current low interest rates driven by the Bank of England keeping the base rate at 0.5%.
The research among savers is echoed by financial advisers themselves – around 91%** of IFAs warn of a growing financial advice gap in the UK with 45% of them blaming the introduction of the Retail Distribution Review and 23% saying the withdrawal of advice on the High Street is also making it harder for savers to find help with their investments.
Advisers expect the situation to worsen – 53% expect to have to stop advising some clients as their accounts are no longer commercially viable.
The average minimum investable amount set by advisers for their clients is nearly £50,000 (£48,487). The study found 47% of those with savings or investments have a kitty of less than £10,000.
Yorkshire Building Society – including Barnsley, Chelsea and Norwich & Peterborough building societies - believes the difficulty savers face with sourcing help is a growing problem. It is campaigning to highlight the need for advice and the no obligation initial financial advice service available in its 231 branches.
Simon Broadley, Retail Investments Manager at Yorkshire Building Society, said: “We feel offering a service like this is important particularly as changes in financial regulation have prompted many other High Street financial institutions and advisers to withdraw advice.
“The introduction of the Retail Distribution Review has been good news for customers by making it clear how much advice costs but there are wider issues to consider.
“Clearly there is a problem when 27% of people who want advice are finding it difficult or very difficult to find help. There is a definite demand among savers and investors for help that is not being met.
“Customers using the Yorkshire Building Society service offered through Legal & General will not pay for advice unless they choose to invest and can arrange an appointment online at www.ybs.co.uk or by going into branches of the Yorkshire, Chelsea, Norwich & Peterborough and Barnsley building societies.”
Yorkshire Building Society’s research shows currently around one in eight (12%) of savers and investors receive advice on their portfolios. That drops to around 10% among the 35 to 50-year old age group, who potentially face the biggest financial pressures.
Around 80% of adults have some form of savings and investments – women are much more likely to not have any savings or investments with 22% having nothing compared with 14% of men.
The Yorkshire, in partnership with Legal & General, offers tailored advice for all including detailed no obligation recommendations following initial consultations with a fully-qualified financial consultant. Customers who go ahead are charged an initial 3.5% of the value of the investment for advice by L&G. Customers can also opt for an on-going service at an annual cost of 0.65% of the value of their funds.
