"It is a warning flare to the advice market that we all need to do a much better job of articulating what a financial adviser is for, how they can help and the value they can offer."
The survey asked respondents what three things they would do if they were to be given £500,000 tomorrow. Just 27% said they would speak to a financial adviser, which was consistent across all age groups.
Of those that currently have a financial adviser this rises to 58%, but falls to 27% for those that have used one previously and 19% for those that have never used an adviser.
The most popular option was to buy a property, with 57% saying they would do so. Investing and/or saving was low down the pecking order with 28% saying they would invest the money, 27% would place it into a savings account and15% would put it into a cash ISA.
Ian Browne, retirement planning expert at Quilter, commented: “These figures make for worrying reading. It is a warning flare to the advice market that we all need to do a much better job of articulating what a financial adviser is for, how they can help and the value they can offer.
“In many respects the industry relies on life events, such as receiving a windfall like an inheritance, as an impetus to seek advice. However, this reveals that route is not as effective as we’d hope. And it is vital that people do seek financial advice. We know that those that win the lottery or a top premium bond prize are given an advice referral, but that isn’t the case with things like inheritance.
“Raising this awareness can be in part resolved by ensuring current clients and their families are aware of the services that you can offer and the various events that advice can help with. If someone were to inherit £500,000 then they could have a lot of tax complications they need to consider and with so many thinking of buying a property they need to think carefully about why that is and what that property is for. If it is a second property for investment that may not be their best option.
“On top of this the image of our profession is not as strong as it should be. While it is absolutely vital that clients are wary of those who don’t deserve their trust we need to ensure that advisers are viewed as go-to experts.”
