Nearly one in three adults would rather get financial advice from friends and family than a professional financial adviser, according to new research by a financial advisory business.

A survey for Foster Denovo of  2,002 people aged 20-55, found that 29% would prefer seeking advice from their own family or close friends rather than a professional adviser.

Some 14% of respondents said they would shun professional advice because they do not trust advisers.

However, 72% of people who had sought professional advice said it had improved their finances.

The research also found that internet search engines were becoming more popular sources of information on financial matters with 25% of people consulting these.

Personal finance websites, such as MoneySavingExpert, were used by 23%.

Since 2013 new entrants including ‘robo-advisers’ have also made inroads, said the firm, bringing more affordable advice solutions to some.

The company said that it was not surprising to see that the main reason people were not seeking professional advice was because it was seen as “too expensive”, according to 34% of respondents.

One factor in the reluctance to use professional financial advisers may have been the Retail Distribution Review in 2012 which abolished adviser commission but may have limited advice options for those with fewer assets by making advice more expensive and fee-based.

Roger Brosch, chief executive at Foster Denovo, said: “Many of the findings from our research make for concerning reading but they are not necessarily surprising. 

“It is clear that for many, cost remains a barrier and effective solutions must be found to engage with everyone in a way that works for them, providing the information and confidence they need to take suitable action.”

 “In our view, particularly for the important life decisions, there is no substitute for professional Financial Planning.  Our sector will only truly thrive when we are able to engage and implement effective intergenerational planning, and that requires us to constantly innovate and adapt to the changing needs of younger clients who will wish to interact differently in future. 

“We must respond to this challenge positively and proactively and build the bridge that will support high quality Financial Planning both now and for future generations.”

Foster Denovo has more than financial advisers and 150 support staff. The group also owns an investment management company, Sequel Investments.

The research, ‘Planning for a brighter tomorrow: the state of the nation’s retirement finances’, can be downloaded from the Foster Denovo website or by clicking here.