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Financial advice changes lives, SJP’s Real Life Advice Report finds

At a glance

SJP’s Real Life Advice Report in 2024 was one of the largest consumer experience surveys commissioned by the financial services sector.
The Report found conclusive evidence of the positive impact of financial advice on people’s ability to reach their goals and feel financially secure.
But, with over a third (33%) of the population feeling that advice ‘isn’t for them,’ there remains much to be done to bridge the ‘advice gap’.

Over the past few months, we have shared insights from our Real Life Advice Report – our largest consumer survey to date. Widely reported in the press, many of the findings underline the importance of financial advice, and its ability to change people’s lives for the better.

Now, looking back over the survey as a whole, we can see a variety of positive endorsements of the value and impact of financial advice.

Key findings: The real life impact of financial adviceAlmost half (48%) of those surveyed first took financial advice due to a major life event or milestone.84% of those taking regular financial advice say it significantly benefits their emotional and mental health.65% say it has improved their quality of life and enabled them to reach specific goals.62% of those in receipt of regulated financial advice across all age groups have never switched their financial adviser.25% of people say ongoing financial advice makes them feel less vulnerable.60% of current retirees plan to pass down cash to their family through inheritance.18-34 year-olds are more likely than older generations to look for financial advice or guidance.

What’s holding people back from seeking financial advice?

Despite an overwhelmingly positive response from those already receiving ongoing advice, we uncovered deep-rooted misconceptions amongst those who hadn’t used financial advice or guidance. 33% of all respondents said they felt financial advice ‘wasn’t for them,’ or that they simply ‘didn’t have enough money’ to need advice. The Report also highlighted that over half of us (52%) wouldn’t reach out to our financial adviser to help us through challenging circumstances – even if those circumstances were financial.

Time and again, people assume that seeking advice or guidance is only for the very wealthy or for those with financial problems.

This confirms that we must change the perception of financial advice. Its role has never been more important, nor the need for it more urgent.

Why advice matters, whatever your age

Perhaps not surprisingly, the most common reason to seek advice over the age of 44 was for pension and retirement planning. But the Report also threw up some surprises. We found that almost a quarter (24%) of young people were already using financial advice or guidance to help navigate specific life events such as mortgages or marriage. That’s more than older generations – and perhaps more than we thought.

These findings highlight the increasingly complex financial future that Millennials and Generation Z face. They need, indeed are reaching out for, additional support and guidance. It’s up to us as providers of the future to make sure that financial advice is even more flexible, accessible and relevant to them.

Why relationships matter as much as returns

The Report also highlighted the role of trust and relationships in financial advice. Being someone’s financial adviser is about more than just managing money. It’s about helping people through life’s changes and navigating financial complexities with confidence and care. Once people start taking advice, they are very likely to continue – 62% stay with the same adviser for their whole life. More than one third (39%) of those surveyed put that down to trust.

Financial advice – the way forward

So many more people’s lives and futures could be improved simply by getting access to the support they need.

We need to attract and train more financial advisers. We must fill the gap between guidance and full holistic advice, to make support more widely accessible. And we need a coordinated campaign across the industry to change perceptions around financial advice. Whatever someone’s circumstances, there should be help and advice that’s accessible.

When we achieve that, we unlock the potential for individuals, families, and our society to thrive.

What is the Real Life Advice Report?

Opinium surveyed just under 12,000 UK adults nationwide in two polls between May and August 2024 on behalf of SJP. The survey – our largest consumer survey to date – is based on interviews and real life stories exploring the value of financial advice, our attitudes surrounding it, and its future.

Catch up on all 6 Chapters of The Real Life Advice Report here.