£40,000 richer if you take Financial Advice

This week, we came across some research that is extremely close to our hearts, and is something that has been the pivotal purpose of Active’s being since inception.

People who take financial advice (independent or restricted) are on average £40,000 better off than those who do not, says research by the International Longevity Centre-UK (ILC-UK).

The research was based on 5,000 people and households across the United Kingdom.

The report (supported by Royal London) examined the impact of financial advice on two groups – the ‘affluent’ and the ‘just getting by.  Aptly named ‘The Value of Financial Advice’, the report found people that received financial advice between 2001-2007 had accumulated “significantly more” liquid financial assets and pension wealth than their unadvised counterparts by 2014.

The ‘affluent’ group was a wealthier subset of people who were more likely to have a degree, be part of a couple and be homeowners. The ‘just getting by’ group was made up of less wealthy people with lower levels of education, single, divorced or widowed and renting.

It found the ‘affluent, advised’ accumulated on average 17% (£12,363) more in liquid financial assets than the ‘affluent, non-advised’ group, and 16% (£30,882) more in pension wealth, bringing the total to £43,245.

Meanwhile the ‘just getting by, advised’ accumulated on average 39% (£14,036) more in liquid financial assets than the ‘just getting by, non-advised’ group, and 21% (£25,859) more in pension wealth, bringing the total value added to £39,895.

The report also found financial advice led to greater levels of saving and investment in the equity market, with the ‘affluent, advised’ group 6.7% more likely to save and 9.7% more likely to invest in the equity market than their non-advised peers.

Equally, the ‘just getting by, advised’ group were 9.7% more likely to save and 10.8% more likely to invest in their equity market than their non-advised counterparts.

Those who had received advice (in the 2001-2007 period) also had more pension income (than their peers) by 2014, with the ‘affluent, advised’ group earning £880 more per year than the ‘affluent, non-advised’ group.  The ‘just getting by, advised’ group earned £713 more than their counterparts the ‘just getting by, non advised’ group.

This research is extremely reassuring not only to ourselves and our proposition, but more importantly to you – our clients.  At Active we are continually seeking ways to ‘add value’ to our clients, and there comes no better way of doing so than in your own personal wealth.

Call Active today on 01642 765957

Find out more about Active here

Follow Active on Twitter

The content of this blog is for information only and must not be considered as financial advice.  We always recommend that you seek independent financial advice before making any financial decisions.

 

Get in Touch

If you would like to find out more about how we can help you, please give us a call or drop us an email.

Phone Us Email Us
Keep up to date

Sign up to our newsletter to keep up with all things Active.

Active Spirit

“Having been a client of Active for many many years and have always been given great advice and direction. I am now looked after by Andrew. He has given excellent advice and service, continuing on the great work this company has always offered me. Always cheerful and helpful; a great asset to Active. I have no problem recommending him to other people.

Operations Manager Rachel encouraged by Active ethos to continue studies

25th September 2018

Here at Active Chartered Financial Planners we are celebrating once again after another member of the team gained a new qualification. Operations manager Rachel McCulloch has been awarded a Level…

Active ladies reach national awards final

4th September 2018

Active Chartered Financial Planners are celebrating the success of two team members who have reached the finals of a prestigious industry awards ceremony. Liza Pontone and Emma Cherrington (nee Richardson)…

Bank of England Base Rate is on the rise, so what’s the logic behind it?

12th August 2018

With Chartered Financial Planner, Andrew Gilmore. In March 2009, the Bank of England reduced the base interest rate to 0.5%, the lowest rate in nearly 300 years. We saw a…