This means almost two in three (64%) consumers haven’t sourced financial advice.
The study, which looked at consumer views of the housing market, as well as attitudes, behaviours and experiences of those who have purchased or are in the process of purchasing a property, found that the reasons for not seeking financial advice differ greatly. Although 38% don’t intend to, 5% can’t afford to, 9% haven’t decided yet and 13% haven’t yet but might have to in the future.
When asked what their biggest financial concern for the next six months was, 16% admitted it was having a reduced income. The same number were also anxious about getting into debt and having to dip into savings to make ends meet, with the research showing that getting into debt and having to use savings is a longer-term concern too - 16% of people stated that it is their biggest financial concern for both the next six months and the next year.
With our finances becoming a key talking point in the past year, respondents were asked who they turn to for financial advice. While nearly a quarter (24%) would turn to the bank, over a fifth (22%) a financial adviser and 21% a mortgage adviser/broker, a significant number are now turning to less traditional routes.
The highest percentage of all, nearly a third (29%) of people admit to turning to financial experts and influencers such as Martin Lewis for their financial advice needs. 21% would turn to online and media/news sources for their advice, but just 4% would turn to social media influencers.
Rich Horner, Head of Individual Protection at MetLife, comments:
“The pandemic has put many people’s finances in an unexpectedly difficult position and while some have been able to save more in lockdown, many others have been faced with job losses, falls in income and hardship. As a result, our research shows that more than a third (27%) of people have felt compelled to take financial advice in order to shed more light on their current financial situation or get their finances back on track. This is a sensible decision as financial advice can make a big difference to how people think about their futures. It can help them better understand how to protect what is most important to them via valuable insurance policies, as well as helping to put plans in place for the future by developing a savings and investment strategy.
“But there are still a number of factors that are standing in people’s way - 5% say that they can’t afford to seek financial advice, 15% haven’t got round to it yet and 9% haven’t decided if they want to seek financial advice. While putting off making that first appointment is not new, it can be detrimental to people’s finances for the long term. The sooner you seek financial advice the earlier you can start putting a plan together for your future goals and ensure you have the right protections in place should the unexpected happen. If the last year has taught us anything, it is just how unpredictable life can be.”
