Demand for advice remains strong among younger and affluent consumers

Almost three in five consumers (57%) say they are likely to seek financial advice at some point in the future. However, the strongest demand comes from younger affluent consumers, with 84% of HENRYs (high earners, not rich yet) and 81% of people aged 18-44 saying they would consider taking advice in future. 

Women are also particularly receptive, with 62% saying they are likely to seek advice compared with 54% of men.

The findings come from Quilter, which has launched its new Value of Advice Report, examining how attitudes towards financial advice, investing and financial decision-making have evolved since its original work on the value of advice in 2018.

Based on research conducted with more than 2,000 people who have never received advice, the report finds that demand for advice remains strong, particularly among younger and affluent consumers, despite the rise of digital investing platforms, social media and artificial intelligence.

Despite this openness, the research suggests many consumers do not fully understand the breadth of support advisers can provide.

While 76% recognise advisers can provide a financial plan and investment recommendations, 44% are unaware advisers can help avoid paying too much tax, while 60% are unaware advisers can help consolidate pensions.

The report also highlights a number of areas where consumers view financial planning as important but lack confidence managing it themselves, including dealing with market volatility, managing tax on income and investment growth, and deciding where to invest.

The findings also suggest growing demand for more flexible forms of support. Nearly half of consumers (49%) would consider a one-off financial review, while 40% would consider targeted support. Among HENRYs, openness rises to 56% for comprehensive advice, 51% for targeted support and 37% for a one-off ISA review.

Steve Gazard, chief distribution officer at Quilter, said: “The purpose of this research was to revisit the value of advice in a world that looks very different to the one we examined in 2018.

“Consumers today have access to more information than ever before, yet many still lack confidence in some of the most important financial decisions they face.

“What is particularly encouraging is the strength of demand we see among younger affluent consumers. HENRYs are among the groups most open to advice, despite often not seeing themselves as traditional advice clients.

“The research also highlights that many consumers underestimate the breadth of support advisers can provide. Advice is often associated with investment recommendations, but clients increasingly need support across tax planning, pensions, retirement, inheritance planning and navigating financial complexity.

“As consumers face more choices and more information, the real value of advice increasingly comes from helping people make better decisions, avoid costly mistakes and build confidence that they are on track to achieve their long-term goals.”