Network calls for more promotion of value of advice

10 June 2020

National network Openwork has called upon the government, schools and industry bodies to do more to promote the value of financial advice and highlight the different services on offer. 

Openwork said advisers were particularly in favour of promoting the value of advice as part of financial education in schools, with 65% believing more emphasis should be placed on the advice element in secondary school.

The survey of 115 advisers also found that over half (51%) believe trade bodies such as PIMFA and the Association of British Insurers (ABI) should invest more in promoting the benefits of advice.

Online services such as The Pension Advisory Service, The Money Advice Service and the Money and Pensions Service provide some financial advice support, however advisers said more should be done to promote these options.

According to Openwork’s research, nearly half (47%) of advisers would like to see a government-backed campaign targeting adults promoting the value of financial planning.

A similar number (40%) of respondents also felt employers should be encouraged to offer financial advice and guidance in the workplace.

The rally call for greater awareness around financial advice came as Openwork said its research showed advisers generally find clients receptive to paying for advice. Nearly two thirds (65%) said their clients are willing to pay for advice when provided with an explanation, while 38% are happy to pay without an explanation. Only 3% of advisers said they regularly lose clients due to their fees.

Mike Morrow, wealth and platform director, Openwork, said: “Although we live in challenging and uncertain times, with long term impacts of COVID-19 on society and the economy still unknown, it remains important people understand the benefits of financial advice as well as the different types of services and products out there to support their long term financial wellbeing.

“More now than ever, we should all be working together to promote the value of advice to people. People will be facing unprecedent financial challenges bought about by COVID-19, with many now having questions or concerns about their own financial situation and unsure where or who to turn to for help.”

Liz Field, chief executive, PIMFA, commented: “We welcome the findings of the Openwork research that add to the ever-growing body of evidence to highlight the important role of our sector and the true value of advice it provides to individuals and families as they plan for their personal financial futures.

“Advice from qualified financial professionals is proven to lead to better financial outcomes across all segments of society. It is all our responsibility to ensure that people are provided with the best information, guidance and access to advice to ensure they are empowered to make important decisions about their futures and safeguard their financial and mental wellbeing.”

Professional Paraplanner