A study by Aviva shows that when seeking financial advice family and friends are often the first stop people make and not Independent Financial Advisers (IFAs)
Aviva have commissioned a study into the value of financial advice, the results will make interesting reading for consumers and financial professionals alike.
Friends and Family
The study shows that almost 75% of 18 to 25 year olds would turn to family and friends for financial advice before consulting a professional adviser. The figures are very different for older generations, with only 25% of those aged 65 and above consulting friends and family first.
28% of those aged 65 and over would make an IFA their first port of call for advice.
Graham Boffey, distribution director at Aviva, said: “It’s a concern that so many people are relying on friends or family and the internet for financial advice, and that they are not aware of what an IFA could offer them.”
It seems that the internet is satisfying the need for greater information with more than half of 18 – 25 year olds using it for obtain financial information, although less than 25% of those aged 65 or older would use the internet to obtain information.
The report’s findings also suggest that there may be a lack of understanding amongst consumers about what IFAs actually do.
Whilst most of those surveyed knew that IFAs could advise on areas such as savings, investments, mortgages, retirement planning, tax and insurance, only 15% knew that IFAs could offer a ‘holistic’ financial planning service. Furthermore only a quarter of those surveyed knew that IFAs could offer debt advice.