More than half UK adults do not trust financial advisers, reveals survey

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19th March 2021 11:48 - Financial Services

More than half UK adults do not trust financial advisers: A survey of UK adults has found that more than half (57%) do not trust independent financial advisers, with the figure becoming even greater amongst those aged 55 and over (65%).

The research was conducted by My Pension Expert and polled 2,000 people to gauge their views around the subject.

When asked for their reasoning for the lack of trust, more than a quarter of respondents said they had felt pressured to buy a product or service after speaking to a financial adviser, without 'fully understanding' what they were buying. A smaller percentage (13%) said that following the advice of a financial adviser they had gone on to lose money.

The cost of using a financial adviser was also an issue for the majority of respondents, with three-quarters saying that using one was 'too expensive'.

Looking to how many people had used a financial adviser, the survey found that almost two-fifths (38%) had, however almost two-thirds (65%) said they preferred to find free advice online. Three-quarters, however, said they felt 'confident enough' to make decisions about their finances independently.

The research also found that almost eight out of 10 people (78%) would feel more positive about seeking financial advice from a professional if there were tougher penalties for IFAs who took part in unethical ventures, while just over three-quarters (76%) would like to see greater transparency when it comes to how IFA fees are calculated.

Andrew Megson, executive chairman of My Pension Expert said: “The lack of trust in independent financial advisers is alarming – it is a wakeup call that the financial services industry cannot afford to ignore."

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