Major life events and milestones are the catalyst for nearly half of people to seek financial advice, reflecting the need for forward planning, says St. James’s Place.
The second chapter of SJP’s Real Life Advice Report found 48% of those who have accessed advice or guidance did so following a key moment such as buying a property, getting married or dealing with an unexpected change like divorce.
Nearly a fifth (17%) said they sought advice when they reached a certain age, while 15% did so when buying a property. Just over one in ten (12%) used an adviser when they received an inheritance, while 10% cited reaching retirement and a further 10% cited getting married.
The financial advice group said unexpected change and challenges were also key drivers, with 12% of respondents seeking support following a change in job status, while 6% sought advice following divorce. Other triggers included caring for loved ones, serious illness and becoming a single parent.
Alexandra Loydon, director partner engagement and consultancy at St James’s Place, said: “Big life events and milestones make people stop, assess and plan and often they prompt people to undertake some financial planning too.
“While it’s clear that one of the greatest benefits of financial advice or guidance is the support it can offer in times of change or stress, the key to navigating those moments is putting a strong financial plan in place ahead of time. Seeking the support to do so not only boosts mental and emotional wellbeing, but provides the confidence to reach life’s goals and milestones in the first place.”
In addition to life events and milestones, the study also found that the cost-of-living crisis was a key driver, with 18% of people accessing support for this reason, while changes in the economic environment prompted 13% to take action and 10% turned to advice as a result of high mortgage rates.
However, SJP said there were also positive drivers, including those who had accumulated a savings and investment pot large enough to warrant advice.
Younger generations were more likely to seek support for complicated issues, such as the cost of living crisis and getting on the housing ladder. In contrast, those aged 55 and over had simpler reasons such as retirement or their savings reaching a certain level.
Loydon added: “Younger generations face a very different landscape to their parents and grandparents, from higher living costs and a tougher housing backdrop, to the decline in defined benefit pension schemes meaning greater individual responsibility for their retirement. This increasingly testing and complex backdrop means it’s even more important to be thinking about and taking action to build up finances as early as possible.”
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