"Although the affordable advice gap has increased, our research found that trust and value are far more important than cost to both genders and all ages."
Its figures show that an estimated six million British people would now pay for advice if it cost less, up from 5.3 million last year.
The research, among over 2,000 British adults, is OpenMoney’s third annual advice gap report. It found that among people who have not paid for advice in the last two years and would be unlikely to do so in the future, women are more cost-conscious than men, with 20% saying they would be willing to pay for advice if it cost less, compared with 14% of men. Young people are least concerned about cost, with just 11% of 18 to 24-year-olds identifying it as an issue, compared to 20% of those aged 35-44.
Although cost remains a significant concern, trust and value are more important when it comes to encouraging people to pay for advice. A third (33%) of respondents who would be unlikely to consider paying for financial advice, having also not done so in the past two years, said they would need to be convinced that advice would save them money. A further third (32%) would need to be sure they could trust the advice.
Anthony Morrow, co-founder of OpenMoney, commented: “Although the affordable advice gap has increased, our research found that trust and value are far more important than cost to both genders and all ages. People want to be convinced that taking advice will make a difference to their finances and save them money overall.
“Trust has long been an issue in the advice sector: memories of a sales and commission driven culture at some firms and an over-reliance on complex products and jargon have damaged people’s view of all advisers. Restoring people’s faith in the benefits of financial advice is therefore crucial to closing the advice gaps.”
