Unsurprisingly, 84 per cent of 18 to 24 year olds say they have never sought financial advice. While you would expect this figure to decrease dramatically as people get older, a staggering 64 per cent of those aged 25 to 34 say they have never sought advice. Interestingly, this figure levels out to around 50 per cent for those aged 35 and over. Worryingly, the levels do not decrease after this point suggesting that financial wisdom does not always come with age.
Marriage and family life also appear to be a deciding factor in whether to seek financial advice. Worryingly, 48 per cent of those married or cohabiting with children admit that they have never sought financial advice. This is the very group that most needs advice, as individuals must plan for their dependant’s financial future, as well as their own. This figure rises to 53 per cent of those cohabiting without children.
However, a staggering seven out of ten (70 per cent) of single people surveyed say they have never sought advice, rising again to 73 per cent of those who are in a relationship but live alone.
There were also significant regional variations, with six in ten Londoners admitting that they have not sought advice. This rose to a shocking 65 per cent in the Midlands, followed closely by the West Country where 63 per cent say they have not sought advice. Yet this did fall to 49 per cent in Wales, followed closely by 47 per cent in North Scotland; suggesting that the Scottish and the Welsh may have a thing or two to teach the English.
Out of all those who say that they have never sought advice, exactly half claim it’s because they do not think they have enough disposable income to make seeing an adviser worthwhile, which rises to more than two thirds (69 per cent) in North Scotland, and (62 per cent) in the West Country.
Overall, a fifth (20 per cent) surveyed say that it is just too expensive to have an adviser. The second most cited reason is that individuals contacted their banks (16 per cent) when they needed financial advice, and almost one in eight (12 per cent) rely on friends and family for advice.
Tony Solomon, director, life marketing, Zurich, said: “The sheer number of people walking blind into their financial decision-making presents a disturbing trend in society and an alarming picture for the future. It is troubling to know that more than half of the population has never sought financial advice at a time when they most need it.
“Today’s volatile markets present both a challenge and an opportunity to financial advisers to add real value and to demonstrate their expertise. With the burdening debt crisis and current economic situation, people need financial advice now more than ever; yet an alarming 71 per cent of individuals are not even considering reviewing their finances. The decision to seek financial guidance is a step in the right direction towards setting up a long-term plan to survive the credit crunch and prepare financially for their old age.
“We believe the challenge for the future lies in promoting the importance of financial advice, especially to the younger generation who might not realise the value it offers.”
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