Almost one in five (19 per cent) UK adults with stock market related investments have struggled to find an IFA, financial planner, or wealth manager in the past 10 years, research has revealed.
Research from Investec Wealth & Investment, which gathered the views of 535 UK consumers, found the main reason for this lack of advice was due to consumers’ investment portfolio not being big enough, which was referenced by 41 per cent of respondents.
This was ahead of respondents not thinking the advisers they spoke to were very good (39 per cent), andadvisers planning on leaving the industry or changing jobs (24 per cent).
Additionally, 24 per cent stated that the IFAs or wealth managers were too busy and didn’t want to take on new clients.
Investec Wealth & Investment head of strategic partnerships, Simon Taylor, said: “As more and more clients move into drawdown, the burden of work on those IFA’s left will only increase.
“Working with a DFM to alleviate some of this burden can significantly help to deliver the much-needed capacity to concentrate on the financial planning needs of clients.”
Advisers' response
The research also sought the opinions of UK financial advisers and planners and found42 per cent saidthe current shortage of IFAs and wealth managers is set to increase in the future.
Some 5 per cent of those surveyed went further, saying it will increase “dramatically” over the next five years.
Conversely, around half (51 per cent) ofadvisers thoughtthe shortage would decline over the next five years and around 7 per cent believed the current level of shortage will stay the same.
The top reason given for future adviser shortageswasgrowth of the digital and tech wealth management platforms which will force more IFAs and wealth managers to retire (81 per cent).
This was followed by the industry struggling to attract enough younger talent (74 per cent), and that generally more IFAs and wealth managers are set to retire, (55 per cent).
Other reasons included the growing regulatory burden facing the industry(48 per cent), and the growth of artificial intelligence making some of the functions of wealth managers redundant (43 per cent).
Taylor saidit’s “concerning” that the current shortage of IFAs and wealth managers in the sector could continue, particularly when the impact is being seen through potential clients being lost simply because advisers cannot take on new business.
Taylor statedmore must be done across the sector to make it an attractive career for new talent.
At the same time firms need to ensure they have the right technology, tools and services to enable their IFAs and financial planners to focus on the aspects of the profession that really matter.
tom.dunstan@ft.com
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FAQs
A financial advisor is worth paying for if they provide help you need, whether because you don't have the time or financial acumen or you simply don't want to deal with your finances. An advisor may be especially valuable if you have complicated finances that would benefit from professional help.
Why is it so hard to find mental health help? ›
Experts say a variety of obstacles stand in the way of those seeking mental health support, including a shortage of therapists, especially therapists of color, a lack of awareness among primary care doctors about available services, and hard-to-navigate websites.
What is a short answer to mental health? ›
Mental health includes our emotional, psychological, and social well-being. It affects how we think, feel, and act. It also helps determine how we handle stress, relate to others, and make healthy choices. 1. Mental health is important at every stage of life, from childhood and adolescence through adulthood.
Why is there a lack of access to mental health services? ›
The shortage and maldistribution of mental health professionals across the country further impedes access to mental health care. Rural areas, where 14% of the U.S. population (or 46 million people)11 live, have disproportionately low numbers of practicing mental health professionals compared with urban areas.
Is 2% fee high for a financial advisor? ›
Answer: From a regulatory perspective, it's usually prohibited to ever charge more than 2%, so it's common to see fees range from as low as 0.25% all the way up to 2%, says certified financial planner Taylor Jessee at Impact Financial.
Is a 1% fee for a financial advisor worth it? ›
While 1.5% is on the higher end for financial advisor services, if that's what it takes to get the returns you want, then it's not overpaying, so to speak. Staying around 1% for your fee may be standard, but it certainly isn't the high end. You need to decide what you're willing to pay for what you're receiving.
What is the 12 question mental health? ›
The 12-Item General Health Questionnaire (GHQ-12) (Goldberg & Williams, 1988) consists of 12 items, each one assessing the severity of a mental problem over the past few weeks using a 4-point Likert-type scale (from 0 to 3). The score was used to generate a total score ranging from 0 to 36.
What are the psychological effects of being single too long? ›
Such experience can negatively impact your wellbeing, leading to: feeling not good enough[3] , social isolation, mental health issues, such as depression or loneliness.
What state spends the most on mental health? ›
The following are the top 10 states for the highest mental health service spending per capita:
- Maine - $345.36.
- Alaska - $341.08.
- District of Columbia - $306.87.
- Vermont - $291.70.
- Pennsylvania - $287.17.
- New York - $260.78.
- Connecticut - $216.76.
- New Jersey - $208.90.
Social stigma of mental health treatment and conditions
Studies have found that the stigmas associated with mental illness—defined as the “devaluing, disgracing, and disfavoring by the general public”—often prevent people from accessing treatment.
Surgeon General Vivek Murthy's advisory on youth mental health (2021) states, “The pandemic era's unfathomable number of deaths, pervasive sense of fear, economic instability, and forced physical distancing from loved ones, friends, and communities have exacerbated the unprecedented stresses young people already faced.
Is it a good idea to use a financial advisor? ›
Bottom line. While not everyone needs a financial advisor, many people would benefit from personalized advice to help them build a strong financial future. You don't need to have a lot of wealth to take advantage of a financial advisor.
How much money should you have before hiring a financial advisor? ›
Generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could $500,000, $1 million or even more.
What are the disadvantages of having a financial advisor? ›
Potential negatives of working with a Financial Advisor include costs/fees, quality, and potential abandonment. This can easily be a positive as much as it can be a negative. The key is to make sure you get what your pay for. The saying, “price is an issue in the absence of value” is accurate.
At what point should you consider a financial advisor? ›
Consider hiring an advisor if your finances are complex or you experience a major life event. Choose an advisor you feel comfortable with and whose expertise aligns with your needs.
