Hands linked together

We work closely with our clients to help them achieve their financial objectives. We have always believed in the value of good financial advice and it is encouraging when independent research supports our opinion.

The International Longevity Centre recently produced some research, they are a charitable organisation focusing on some of the biggest challenges facing Government and society in the context of demographic change. Their recent paper, produced in July 2017 entitled ‘The Value of Financial Advice’, highlights the average increase in the value of assets for 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.

The report examined not only the impact of financial advice on an ‘affluent’ group but also those who were deemed to be ‘just getting by’. The ‘affluent’ group was formed from a wealthier subset who were more likely to have a degree, be in a partnership, and be a homeowner. The ‘just getting by’ group were from a less wealthy subset who were more likely to have lower levels of education, be single divorced or widowed, and rent a property.

The report found that

The ‘affluent but advised’ accumulated on average £12,363 (or 17%) more in 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 financial assets than the just getting by but non-advised group, and £25,859 (or 21%) more in pension wealth (total £39,895)

It was also noted that those who 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. Our aim at EBS is to continue to offer this to all our clients.

For more information concerning this report, please follow the link below and if you have any questions concerning this or any other matter, please don’t hesitate to contact us.