At a glance
- Almost 1 in 2 of us (48%) seek out financial advice due to a major life event such as getting married or buying a property, or to cope with an unexpected challenge such as job loss or divorce.
- 18 – 34 year-olds are more likely to look for help to navigate complex issues, compared with older generations.
- Financial advice can be invaluable in helping us achieve our goals and come through challenges.
A major life event or milestone – such as marriage, home ownership, reaching a certain age or change in employment status – is the main reason why people seek financial advice, according to the second chapter of the Real Life Advice Report, St. James’s Place’s largest consumer survey to date. These moments and milestones – some predictable, others not – are collectively the biggest trigger (48%) for people to seek financial advice or guidance.
This latest chapter identifies five key reasons why people seek financial advice, and the role it plays throughout our lives. According to the results, there are three key, age-specific life stages when considering the advice journey: the 18–34s, 35–55s and the over 55s, who each have a different expectation and relationship with financial advice. Of these, the 18–34 year-olds appear to face the greatest level of financial complexity, but are more proactive in seeking financial advice to help them manage their finances than the other generations.
Alexandra Loydon, SJP’s Director Partner Engagement and Consultancy, says the Report underlines the ongoing value of financial advice. “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, to ensure their money works as hard for them as possible, no matter what their circumstances are.
“Seeking advice and guidance 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.”
What is the Real Life Advice Report?
The Real Life Advice Report was commissioned to determine the impact of financial advice and guidance on families and communities across the UK. Interviews were conducted by Opinium on behalf of SJP and took place between May and August 20241. The six part series is a far-reaching survey into our attitudes, use of, and perceptions of financial advice. Twelve thousand people took part in the survey, including those who use financial advice, and those who do not.
Why we seek financial advice
What prompts people to seek financial advice or guidance, and when? Chapter 2 identifies five key ‘drivers’ that trigger people to get advice – ranging from a significant life event to a personal recommendation or referral.
| Key Findings48% seek financial advice to help them with a key milestone or life event.18% of those surveyed sought financial advice due to the cost-of-living crisis, rising to 24% of 18-34 year-olds.12% said a change in job status had triggered a need for financial advice or guidance.27% sought advice when their savings and investments had grown to a point where they thought they should. |
The key drivers of financial advice
Milestone moments and life events
Across all age groups, our survey found that a total of 17% of respondents said milestone moments, such as getting older, reaching a certain age, or life events such as getting married, were a primary reason to seek financial advice. A further fifteen percent said they sought advice when buying a property.
Unexpected life events such as serious illness or divorce were also powerful drivers. Twelve percent cited a change in job status, and 6% sought financial advice to help them through divorce, or caring for a loved one.
A change in the economic or political landscape
The biggest driver in recent years was the cost of living crisis, which prompted nearly 1 in 5 (18%) to seek help or guidance. Others asked for advice or guidance due to a change in the economy (13%), rising mortgage rates, or a change in government (5%).
Coming into money or a growing amount of assets
Just under a fifth (18%) of respondents sought out support when they decided their savings and investments had grown large enough to warrant advice. This trend isn’t related to age or life stage, with almost as many 18-34s (18%) taking advice for this reason, compared with 20% of those aged over 55.
Recommendations and referrals
Personal referrals from friends and family are powerful drivers. Fifteen percent of those who were interviewed said they’d taken advice as a result of a referral or recommendation – rising to 22% of those taking ongoing financial advice. This is underlined by the findings in Chapter 1 of the Report, which showed 86% of those already taking ongoing advice would recommend it to others, saying they’d benefited from better mental and emotional wellbeing (84%), and improved quality of life (65%).
The financial advice journey
Our relationship with our money changes as we get older. Whatever the reason to start an advice journey, the Report makes clear that the type of advice you want, or that you need, depends on your age and life stage.
Those in their twenties or thirties are often prioritising building their career, buying a home or starting a family – along with all the financial decisions that come with those goals. It’s a time to lay strong financial foundations for the future. There can be big outgoings such as mortgages, raising and educating children, or launching a business.
As we age, other financial priorities come to the fore, such as planning for retirement, or leaving a legacy. Our Report details these three key stages and the valuable role advice plays in helping people achieve their goals and overcoming challenges.
Coming soon in Chapter 3 – The advice relationship
Chapter 3 will be released in late October 2024. You can read The Real Life Advice Report Chapter 2: The Advice Journey, here.
We can help you
Get in touch to find out more about how financial advice can benefit you.
Source
1 Opinium surveyed just under 12,000 UK adults nationwide in two polls between May and August 2024. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population. Quantitative data referenced in this chapter is sourced from the first poll, which had a total sample of 7,995 respondents. Survey included those aged 18-34 (1,940), 35-54 (2,654) and 55 and over (3,401).
We’ve looked at the impact of all forms of professional financial advice and guidance – from that offered by a financial advice firm or individual (including a wealth manager), an independent financial adviser (IFA), a qualified financial planner, to advice received through a bank and building society. We have also looked more broadly at understanding the impact of the help people receive through organisations such as Citizen’s Advice, Pension Wise and others.
SJP Approved 30/09/2024