Because of this ‘advice factor’ financial advisers can make a big difference to client investment performance, says the report.

The research for Aegon found the difference between returns on a £200,000 ‘cautious’ and ‘adventurous’ initial investment was £93,058 over the last 20 years.

Research among 250 advisers, as part of Aegon’s adviser attitudes report 2019, found that about a third of advised clients felt less less cautious about investment risk following a discussion with their adviser.

Nick Dixon, investment director at Aegon said: “What’s clear from our figures is that a significant proportion of advised clients are excessively cautious when it comes to investing and that a conversation with an adviser shifts their views about how much risk they can afford to take.

“There are many benefits to financial advice, notably the peace of mind that being advised by an expert provides, but it’s clear supporting individuals to take on the right level of risk is one of them.”

Analysis of stock market returns by Aegon found that the difference in returns between a cautious and an adventurous investment portfolio can be substantial.

Over a 20 year period, someone with £200,000 invested in a ‘cautious’ asset mix (as represented by the ABI Mixed Investment 20% - 60% Shares sector average) would have seen their savings grow to £449,068 by end October 2019.

In contrast, someone investing in a more ‘adventurous’ asset mix (as represented by the ABI Flexible Investment sector average) would have seen their savings grow to £542,126 over the same period, a difference of £93,058.

Aegon accepts that the additional risk also comes with the danger of “a detrimental impact on investors’ savings.” 

Mr Dixon added, however: “For investors with a long-time horizon, excessive caution can be the greatest investment risk.”

Research was conducted by Opinium based on a survey of 250 financial advisers in February and March this year.