The value of financial advice

At Punter Southall Focus, we have always extolled the virtue of financial advice. We recognize that the financial world is complicated and our aim is always to work closely with our clients to enable them to achieve their financial objectives. 

 

Click to read The Value of Advice

 

How do you put a value on financial advice?

Can it simply be shown as an increase in asset value driven by recommendations made by those who class themselves as experts, or is it more than that? We feel the real value comes from offering support and guidance, so that you can achieve four key life stage goals.

We have always believed in the value of good financial advice, but it is still encouraging when that opinion is reiterated by some independent research.

Our attention was drawn to some research, produced by The International Longevity Centre, which is a charitable organisation focused on some of the biggest challenges facing Government and society in the context of demographic change. They aim to present new solutions to the challenges and opportunities of ageing and undertake research and policy analysis.

Their paper, produced in July 2017 and entitled ‘The Value of Financial Advice’, highlights the average increase in the value of assets for those people who sought financial advice over those who didn’t. The period chosen was from 2001-2007 and they then considered their asset value by 2012-14.

What impressed us with the report was that they examined the impact of financial advice on a group titled ‘just getting by’ as well as one titled ‘affluent’. The ‘affluent’ group was formed of a wealthier subset of people who are also more likely to have degrees, be part of a couple, and be homeowners. The ‘just getting by’ group is formed of a less wealthy subset who are more likely to have lower levels of educational attainment, be single, divorced or widowed and be renting.

The report found that

  • The ‘affluent but advised’ accumulated on average £12,363 (or 17%) more in liquid financial assets than the affluent and non-advised group, and £30,882 (or 16%) more in pension wealth (total £43,245)

  • The ‘just getting by but advised’ accumulated on average £14,036 (or 39%) more in liquid financial assets than the just getting by but non-advised group, and £25,859 (or 21%) more in pension wealth (total £39,895)

  • Finally, it was also noted that those who had received advice in the 2001-2007 period also had more pension income than their peers by 2012-14.

These findings highlight what we know - and we hope that you know as well - and that is that good quality financial advice clearly has value to it.

To read the full report, click here – and if you have any questions concerning this or any other matter, please don’t hesitate to contact us.

 

Posted by Stuart Bartholomew

Topics: Insights & Advice

Value of Advice

Questions

Ask The Experts

Want to get in touch?
Just fill out the form below and we will be in touch shortly.

Financial Planning: How we help

investment-graph

Wealth management

Planning with a goal in mind is critical in today's complex financial world. We tailor solutions that match your future vision.

plan
life-assurance

Life assurance

The right cover for you and your family helps to give you peace of mind, whatever life throws at you.

check
mortgage

Mortgages

Mortgages can be complex and confusing. We'll equip you to find the right one for your next move or investment.

Find out more
pre-retirement

Before retiring

The earlier you can start saving for retirement, the more you'll potentially benefit. We'll help you with every step.

get ahead
post-retirement

After retiring

Our financial planners make your money work for you once you've stepped back from working hard to earn it.

learn
inheritance-tax

Passing on your wealth

We help you navigate the complexities of estate and inheritance tax (IHT) planning to help you dispose of your assets as you wish.

talk to us