Roughly 70% of financial advisors are willing to advise on investment portfolios of £50,000 or less, according to NS&I’s latest Financial Advice Barometer
The report also revealed that, while most savers agree that portfolios of £50,000 or less are suitable for the industry to manager, there is still a misconception that only those with extensive portfolios should seek professional financial advice.
However, despite this, 71% of those in the UK reported that they would not think about consulting a financial adviser unless they had a portfolio of £25,000 or more, despite 38% of advisers claiming that they would advise on a portfolio of this size.
While the majority of advisers would provide guidance on portfolios of £50,000 and under, opinion is split over their role in actively supporting a savings culture, with 49% of respondents saying that there is more that advisers can do to support the culture and 51% saying there is not.
Some suggested that financial advisers could support the savings culture by providing further financial education and talking more about cash-based savings, while the other 51% cited the business element of financial advice and the unwillingness of consumers to pay for the service.
NS&I head of intermediary relationships Andrew Pike commented: “Many see the amount of savings they have as a barrier when it comes to seeking professional financial advice, but it is encouraging that advisers are more than happy to advise on £50,000 or less, with almost 40% saying that they would advise on £25,000 or less.”
Since the FSCS limit has been increased to £85,000 there has been an increase in the percentage of advisers who are now suggesting that savers invest more in NS&I products, due to their 100% security guarantee. The percentage has increased from 34% in October 2017 to 51% in January 2018.
This figure coincided with a 15% point drop in advisers recommending clients to spread their cash savings over multiple UK financial providers, dropping from 75% in October 2017 to 60% in January 2018.
“Also, it’s very interesting to see the trend towards advisers recommending to their clients that they invest more of their money in cash to ensure ongoing security and liquidity,” Pike said.
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