Over 50s trust Martin Lewis more than financial advisers - brokers react

A new survey found that people ages 50-90+ trust the financial expertise of Martin Lewis more than that of financial advisers.

We asked brokers via Newspage whether they think this is an accurate portrayal, why this is, and what can be done to improve the perception of advice among the over 50s.

Many understood why over 50s find Martin Lewis trustworthy.

Justin Moy, managing director at EHF Mortgages, said: "Many of those in this age group would have been aware of Martin lewis for nearly half of their lifetime, so both that longevity, and being seen as a strong campaigner for plenty of financial campaigns, will ring well in their minds. That would create a huge sense of trust in what he says and believes."

Graham Cox, director at Self employed mortgage broker SEMH, added: "I like Martin Lewis and I think he does an excellent job of educating people on financial complex topics in a clear and easy-to-understand way. He's also largely seen as independent. Unfortunately the financial services industry is its own worst enemy. Countless episodes of mis-selling and unscrupulous tactics over decades have understandably made the public wary."

Others agreed that an ongoing negative perception of the financial services industry has hindered access to advice, with Thomas Collier, advising director at Advantage Financial Solutions noting that "people that now fall into the over 50s category were those most impacted by the crash in 2008".

He continued: "Financial advisers weren’t solely responsible for the crash but the financial services industry really got battered back then. People lost trust in financial advisers and turned to the likes of the ‘Money Saving Expert’ which boosted Martin’s popularity. It’s been a bit of an uphill struggle since then, although helped enormously by the various industry reviews that have occurred since. Martin is already directing people to specialist advisers who can help them understand the booming over 50s mortgage market, there are more options available now than ever if you’re over 50. A broker that knows their stuff is invaluable. Martin has the power to quash the last remaining stigma and has a duty to do so given his influence."

Scott Taylor-Barr, financial adviser at Carl Summers Financial Services, agreed, stating: "Many over 50s will remember all too well endowments, Equitable Life and PPI; financial scandals that got huge media attention and tarnished the financial services industry. Whilst these were mostly issues with banks and direct sales forces, the advice industry suffered from being tarred with the same brush."

Turning to why over 50s would place their trust in Martin Lewis over an adviser, Scott added: "I would hope the answer is "because they haven't met the right adviser yet", as finding the adviser that best suits you is just as important as their skills, knowledge, and expertise. For those who haven't yet found their perfect adviser (or maybe haven't even looked?) then Martin represents an easily accessible and knowledgeable source of information, aided by the lack of scary-looking regulatory wording and warnings that sit alongside any qualified adviser looking to do the same."

Sam Tate, director at New World Financial Group, said the firm has identified three major issues or 'gaps' that hold the financial advice world back, stating that "Martin Lewis addresses two of these very well - the education gap and the trust gap".

Sam added: "Financial advisers need to understand that the world is changing and their business model and fee structure are both unsustainable and self-defeating in the quest to onboard and gain the trust of more people.

"Martin Lewis is only (one of) the first to do this well, and with AI well on the way, financial advisers that don't communicate well, don't change their business model, and remain focused on charges linked to investment pots, will either need to adapt or die. We all know what happened to the Monks when the printing press came along..."

Rhys Schofield, managing director at Peak Mortgages and Protection, argued that regulation is also holding back the advice sector. Discussing Martin Lewis' popularity, he said: "Perhaps because he's allowed to talk straight, without the regulator breathing down his neck and minus the copious amount of irrelevant jargon that will generally remain totally unread but that has to be sent out to clients by advisers."

However, advisers were generally in agreement that the survey results were 'worrying' for the advice industry.

Samuel Mather-Holgate, independent financial adviser at Mather and Murray Financial, said: "This is worrying data that shows the negative impact that investment scandals can have on an industry. From Arch Cru to Hareqlin and now British Steel pensions, when bad actors get press, this lives in the memory for a long time. From an industry perspective, the regulator could do well to recognise that bad advice is very limited rather than throwing the advice industry under the bus every time there is a lack of regulation, with systemic reviews and retrospective rule changes."