More consumers to seek professional financial advice in 2023

56% of UK adults have never reviewed their finances with a professional adviser, but 20% say they are likely to do so this year, new YouGov research has shown.

The survey of 2,139 UK adults was commissioned by Paymentshield. Those aged 25-34, typically first-time buyers, are the most likely to seek financial advice this year. This cohort is also the most concerned about finances generally, with 45% saying finances are currently their biggest worry.

The survey shows that there is overwhelming confidence among consumers in the value of financial advice. Almost half (46%) of those who are likely to seek professional financial advice this year said the main reason they’d do so is because they think they’d be better off than if they took a DIY approach, for example via self-serve platforms and price comparison sites.

When Paymentshield asked this question in April 2022, only 24% of respondents gave the same answer – demonstrating huge year-on-year growth in the perceived value of advice.

As the rising cost-of-living continues to take its toll, the new research revealed that over half of people (51%) will be scrutinising financial products more this year in a bid to save money.

For example, when it comes to GI, almost one quarter of homeowners (24%) say they do not review their home insurance every year, meaning it may no longer be fit for purpose or represent the best value for them.

In addition, the survey revealed doubt among consumers as to their personal ability to comprehend ‘value’. Over one quarter of respondents (26%) said they’d be unconfident they would understand what a policy covers if they purchased one from a price comparison site.

Only 14% of homeowners said they think advisers have the main responsibility to review home insurance when they’re remortgaging, meaning most would not be expecting the offer to review but may well be receptive to it. Where an adviser did not offer to conduct a review at remortgage, almost two thirds of people (64%) subsequently did it themselves.

Louise Pengelly, proposition director at Paymentshield, commented: “This research clearly shows that in the current market, consumers value the expertise and reassurance they can get from financial advice, instead of opting for DIY approaches that many providers push. With a 25% rise in the cost of building materials alone, many consumers cannot afford to make ill-informed choices when it comes to home insurance.

“We expect advisers will see a rise in demand for their services this year, and there’s ample opportunity for them to provide additional support by discussing home insurance with their clients. There’s a lot of added value they could offer to remortgage customers in particular, many of whom may not expect but would evidently appreciate an offer to review their home insurance.”