Despite there being big gaps in investment knowledge, 29% of people wouldn’t ask for help or advice on investment rules and 28% wouldn’t ask for support with investment ideas, according to a recent survey by Hargreaves Lansdown.
Figures from a survey of 2,000 people by Opinium for the firm in September 2024, also showed that 22% wouldn’t ask for help understanding pensions and retirement incomes.
And in most areas, men are less likely to ask for help than women.
Yet, given that one in three people don’t understand investment until their 30s, and one in four people don’t understand it at all, the fact people don’t want advice is unlikely to be because they know it all, says Sarah Coles, head of personal finance, Hargreaves Lansdown.
“It’s far more likely to be because a lack of knowledge means they’ve disengaged with the subject entirely and decided it’s not for them. However, those who’ve disengaged are still highly likely to be investors – through their workplace pension – they’re just in the dark about it.
“It means we don’t just need help getting to grips with investment, we also need support in understanding why it’s such a key part of our financial planning.”
It is also worrying, she adds, that more than one in five people don’t seek any help or advice on pensions or SIPPs too.
“It means they may be missing out on the benefits that making active investment choices can make. There’s also a risk they start drawing an income without really appreciating the wider issues – which means they may take an approach that doesn’t suit them, and could leave them short of money later in retirement.
The research also flagged gender differences. “They’re not dramatic, but they are persistent, aColes says. “When it comes to almost every area of their finances, men are less likely to ask for help or advice than women. It’s difficult to know how much of this comes down to the relative need for support, and whether societal pressures play a part. If it’s less culturally acceptable for men to ask for help, there’s a risk they could be soldiering on in the dark, and making expensive mistakes.”
Main image: charles-deluvio-rRWiVQzLm7k-unsplash
