There has been an increased focus on this area in recent years and we have reviewed a number of papers now, all of which have shown in differing ways that those who seek out financial advice end up with better outcomes than those who don’t.
The International Longevity Centre UK, along with Royal London, have put together a number of these reports using data from the wealth and assets survey. The most recent of which was published in 2019 and looks at the impact of taking advice between 2001 and 2007 on accumulated financial assets (July 2014- June 2016).
The report found that for ‘affluent and advised’ clients (average financial assets and pension wealth of £98,266 and £249,243 respectively in 2014 – 2016), accumulated liquid and pension assets were 17% and 16% respectively (after taking account of inflation) higher than for the ‘affluent & non-advised’ cohort.
Furthermore, their analysis also showed the benefits of ongoing advice. Their study showed that those receiving ongoing advice, had 50% greater pension wealth than those that had only been advised in the past and had not take up ongoing advice.
Given that the above study looked at a period of approximately one decade, imagine the impact of ongoing advice over a whole lifetime. The above value would be compounded over time resulting in an even greater influence on your wealth.
Furthermore, we believe that this highlights the benefit of starting this process young. bdb offer free financial advice to children (under 25) of clients.
At bdb it is not just financial gain our clients are rewarded with; after all money is just an enabler. bdb’s approach using Life Planning, Financial Planning and Evidence Based Investment means that our clients also live truly successful lives, and you can’t put a price on that. If you are interested in some of the life changing impact we have been able to make, you can hear it directly from our clients here.