For years, consumers have been weighing their options when it comes to choosing financial advice. In a recent survey conducted by YouGov, 2,035 British adults were asked to provide their opinions on the increasing advice gap. What the results show is that while people who have accessed advice are largely supportive and appreciative of the service they receive, people who don’t trust the advice they receive are leading to the perception gap.
At its core, the advice gap boils down to a lack of consumer understanding about the value of taking advice. This is mostly caused by one key factor: advisor trust. Consumers simply don’t trust that their advisors are providing the best product for their individual needs.
When it comes to finding someone to trust with your finances, having an understanding of the different types of financial advice available is key. The first step is to understand what you’re looking for so you can further narrow down where to get the best advice.
Brokers and advisors should be able to provide you with the best advice for your individual circumstances, but it’s important to do your own research to ensure that the advice aligns with your individual needs. Don’t settle for a product that doesn’t match what you’re looking for. Furthermore, consumers should seek out advisors and brokers who have both the experience and knowledge to provide the most complete and accurate advice – consult a financial expert, not just anyone.
The advice gap won’t be eliminated until people start to trust the advice they’re given. As such, consumers should ensure that advisors and brokers have their best interests at heart and that their advice is tailored to their individual circumstances.
It’s also important to remember that most advisors and brokers aren’t simply offering advice – they are also selling products and services. As such, consumers should look at different services, compare them and decide which is the best service for them, rather than simply relying on one advisor or broker.
In order to close the advice gap, advisors and brokers should strive to provide an advice service that is both meaningful and helpful. This means providing ongoing advice and support to ensure that the right products and services are put in place.
Providing ongoing reviews and recommending suitable products and services is crucial to help close the advice gap. Regular reviews are a valuable way of ensuring that the advice given is always relevant and tailored, as well as allowing people to switch between products if you feel that their circumstances have changed.
To summarise, the advice gap is caused by a lack of consumer knowledge and trust of financial advisors, who are in the business of both offering advice and selling products. To start closing this gap, advisors should focus on providing advice that is tailored to each individual’s needs, as well as offering ongoing reviews and suitable products and services. By doing this, consumers will be given the best opportunity to make informed decisions about their financial future.