The above animation highlights the key survey findings of why UK adults use a financial adviser, including:
- 35% say they use a financial adviser because they don’t have the expertise to do things themselves.
- 54% use an adviser to achieve “peace of mind”.
- 50% look to an adviser to help them discern the most appropriate investment vehicles for their needs, and to help them gain a clear plan to achieve their financial goals.
- The main criteria used to judge an adviser’s performance is the investment returns from their portfolio (63%).
Source: Hymans Robertson Investment Services Consumer Survey 2023
How Beneficial is a Financial Adviser?
A financial adviser can be hugely beneficial to those facing pension confusion, questions about how to manage their investments, or a complex estate. An adviser may be less helpful for those with limited savings or a small portfolio, as an adviser’s fees (likely in the $1,000s) may be beyond justification at that point.
Is it Worth Getting a Financial Adviser?
An adviser may not be worth it if you are confident with tax planning, navigating pension rules and managing the powerful emotions of investing. However, an adviser is usually invaluable to those needing expert financial guidance, or who want to delegate the heavy lifting involved with managing their wealth.
What Exactly Does a Financial Adviser Do For You?
A financial adviser can help with pensions, investment strategy, tax planning, financial protection and estate planning. Some help with mortgages and financial protection (e.g. life insurance). Others specialise in niche services, such as pension transfers or expat financial planning. Overall, an adviser provides financial clarity, peace of mind, expert insight and accountability.
Is it Worth it to Pay 1% to a Financial Adviser?
A 1% fee may be worth it if the adviser can help you deliver a decent “real return” over time (your returns after fees, taxes and inflation). 1% is a fairly standard AUM (assets under management) fee for a financial advisor in many developed countries. For instance, an adviser managing a £500,000 portfolio might take a £5,000 fee for that year.
Philip Teale is a MCIM marketer with over 10 years’ experience working with financial advisors – helping them gain new revenue and clients using online channels and AI-powered workflows.