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A fifth of HNWs have never spoken to an adviser

Only 25% of people with more than £100,000 in savings and investments have spoken with a financial adviser in the last year.

Rozi Jones
|
2nd December 2019
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"Advisers identify saving for retirement as the most common challenge for their clients and this is reflected in the broader findings of the report."

19% of HNW individuals have never spoken with a financial adviser, according to a report by Sanlam UK.

Its research found that just a quarter of people with more than £100,000 in savings and investments have spoken with a financial adviser in the last year.

Only 6% of HNWs believe it’s important to know their target retirement pot and just 29% have set a savings target for their retirement.

HNWs are more than twice as likely as those with smaller savings pots to have spoken to a financial adviser in the past 10 years, but even then, 28% have not done so.

Some of this reluctance is driven by a level of self-confidence, with 60% of those that have not spoken with a financial adviser saying it’s because they can do it themselves. 31% say it’s because they don’t trust financial advisers and 20% think it will cost too much.

However advised clients are revealed to be twice as confident about being able to retire how and when they would like to (59% vs 30% non-advised). They were also far more likely to have set a target income for their retirement (27% vs 19%), and to have allocated and passed on money for their dependents while they are still alive (67% vs 40%).

Lawrence Cook, head of UK intermediaries distribution at Sanlam, said: “The irony is that while many of us obsess over day to day finances, the important number, the amount of money needed for a happy and comfortable retirement, is neglected. Our report notes that advisers identify saving for retirement as the most common challenge for their clients and this is reflected in the broader findings of the report. Planning to retire is the great ‘hit and hope’, even among HNWs - often despite their best intentions.

"Talking to an adviser is an important first step. But the impact of these conversations relies on clients being able to detail and express their financial hopes, fears, and aspirations. By identifying the key numbers in their life, adviser can help build a robust financial plan to help HNW clients achieve the certainty and security that they strive for.”

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