Tuesday, 20 November 2012 12:08
Blackrock finds consumers willing to pay only £10 for advice
Blackrock has found that 68 per cent of people are unaware how much financial advice costs and 18 per cent would pay only £10 per hour.
The investment firm highlighted the fact that consumers did not know the cost of advice indicated they believed the advice they received was free, a belief the Financial Services Authority hopes to dispel.
While 72 per cent of people said they were keen to increase their financial knowledge, just 42 per cent said they would seek advice from a financial adviser.
The desire for knowledge was boosted by the fact that financial wellbeing reached 83 per cent amongst those with high financial knowledge.
When asked to pay a fee, only 35 per cent of people said they would be willing to pay to use a financial adviser with the average cost estimated at being £42 per hour. Many Financial Planners charge £100-£200 an hour.
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Stephen Crocombe, head of Blackrock product development EMEA, said he was shocked people were willing to pay £10 per hour as this was less than they would pay to have their gutters cleaned or their hair cut.
Asked what would encourage them to pay more, over half of consumers said nothing would encourage them. Some 27 per cent said knowledge they were receiving independent advice would encourage them to pay and 21 per cent said confidence the adviser was well-qualified.
Mr Crocombe said: "When asked how people could be encouraged to pay for advice, being a fully independent, highly qualified adviser, transparency over fees and charging were all highlighted as important. Encouragingly, these are all outcomes that the RDR is designed to deliver."
Blackrock surveyed over 2,000 British people for the survey, part of a larger survey of 11,000 people in UK, Germany, Switzerland, France, Italy and Netherlands.
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The investment firm highlighted the fact that consumers did not know the cost of advice indicated they believed the advice they received was free, a belief the Financial Services Authority hopes to dispel.
While 72 per cent of people said they were keen to increase their financial knowledge, just 42 per cent said they would seek advice from a financial adviser.
The desire for knowledge was boosted by the fact that financial wellbeing reached 83 per cent amongst those with high financial knowledge.
When asked to pay a fee, only 35 per cent of people said they would be willing to pay to use a financial adviser with the average cost estimated at being £42 per hour. Many Financial Planners charge £100-£200 an hour.
{desktop}{/desktop}{mobile}{/mobile}
Stephen Crocombe, head of Blackrock product development EMEA, said he was shocked people were willing to pay £10 per hour as this was less than they would pay to have their gutters cleaned or their hair cut.
Asked what would encourage them to pay more, over half of consumers said nothing would encourage them. Some 27 per cent said knowledge they were receiving independent advice would encourage them to pay and 21 per cent said confidence the adviser was well-qualified.
Mr Crocombe said: "When asked how people could be encouraged to pay for advice, being a fully independent, highly qualified adviser, transparency over fees and charging were all highlighted as important. Encouragingly, these are all outcomes that the RDR is designed to deliver."
Blackrock surveyed over 2,000 British people for the survey, part of a larger survey of 11,000 people in UK, Germany, Switzerland, France, Italy and Netherlands.
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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