Real Life Advice Report

Chapter 1 of our Real Life Advice Report, Why advice matters, reveals that 84% of those that take financial advice say it significantly improves both their mental and financial wellbeing. However, over half the population don’t believe financial advice is for them, nor realise how it can help. 

Key findings from Chapter 1:

• A third (33%) don’t think advice is relevant to them, while others aren’t aware of its benefits or don’t believe it’s the right time to take advice (8% and 7% respectively)
• 24.6 million people have never accessed any kind of financial advice or guidance
• Among those who have received advice or guidance, 84% say they benefitted mentally or emotionally
• The findings reveal that financial advice can - and does - transform lives.
   

"Sound financial advice transforms lives. It’s what inspired me to join St. James’s Place in 2023, and I’ve seen it play out in so many people’s stories since then. Stories where it’s helped people to own a home, to support their children through education, to kick-start new business ventures - or overcome life's hurdles, from bereavement to divorce. Personal stories like these will ring true for advisers across the country." 

Mark FitzPatrick, CEO of St. James's Place

Chapter 2 of our Real Life Advice Report: The Advice Journey, reveals that almost half (48%) of those surveyed first took financial advice due to a major life event or milestone, such as getting married, buying a house or to cope with an unexpected challenge such as job loss or divorce. 

Key findings from Chapter 2:

• Almost half (48%) of those who have accessed advice or guidance did so due to a key moment such as buying a property or an unexpected change like divorce.

• 12% said a change in job status had triggered a need for financial advice or guidance.

• 18-34 year-olds are more likely than older generations to look for financial advice or guidance when dealing with complex issues. 

“Big life events and milestones make people stop, assess and plan, and often they prompt people to undertake some financial planning too. While it’s clear that one of the greatest benefits of financial advice or guidance is the support it can offer in times of change or stress, the key to navigating those moments is putting a strong financial plan in place ahead of time. Seeking the support to do so not only boosts mental and emotional wellbeing, but provides the confidence to reach life’s goals and milestones in the first place."

Alexandra Loydon, Director Partner Engagement and Consultancy at St. James’s Place

Over 62% of us have had the same financial adviser since we first sought advice or guidance – and 1 in 3 of those people cite the quality of the relationship as their main reason for staying. Trust, understanding and financial satisfaction are the key drivers of relationships between clients and their advisers. 

Key findings from Chapter 3:

• Over 62% of those who receive regulated financial advice have had the same adviser since the start. This rises to 74% amongst the over-55s.  
• A typical relationship with a financial adviser lasts seven years; rising to a decade amongst the over-55s.
• Almost 1 in 3 (35%) cited their strong relationship with their adviser as their top reason for staying. 

“Financial advice is about much more than numbers on a page or graphs on a screen. It’s about building deep, meaningful relationships, and as our research shows these can last many years and span generations. Whether you’re navigating the early stages of wealth creation, planning for retirement, or managing an unexpected life change, having a trusted adviser by your side can make all the difference.”

Andy Payne, Regional Director – Academy Development

Almost one in two¹ of us will find ourselves facing vulnerable circumstances at some point in our lives. Yet less than half of us would turn to our financial adviser for additional support, services and help, according to Chapter 4 of SJP’s Real Life Advice Report. 

Of those individuals who do take advice, one in four said that the advice has helped them feel less vulnerable, and 92% confirmed that ongoing advice has improved their emotional wellbeing and mental health. 

Recognising the characteristics of vulnerability, and offering positive support and advice, is a responsibility shared by the whole financial advice industry. Chapter 4 identifies five key action points to break the taboos around vulnerability.   

Key findings from Chapter 4:

• More than half of us will face periods of vulnerability in our lives.¹
• Almost a third (31%) of those receiving ongoing financial advice sought support due to circumstances known to increase financial vulnerability.
• 52% of people have never thought about discussing additional support or needs with their financial adviser
• 1 in 4 (25%) say ongoing advice has helped them feel less vulnerable

¹ FCA letter to Chief Executives, 8 November 2023.

“Throughout a lifetime, many people will face events and challenges that can increase their risk of financial vulnerability. However, this doesn’t have to dictate their financial future.  By seeking informed advice, prioritising mental health, and building resilience, our research shows they can navigate more difficult times with greater confidence.”

Anna Blake, Chair of our Vulnerable Clients

Retirement planning is the nation’s single biggest reason for seeking financial advice, with 1 in 5 of us planning to seek advice on our retirements in the next six months. That rises to 1 in 3 of those over 44. 

However, the peak age to start retirement planning is 55, which may be too late to achieve the retirement lifestyle and life goals we want in later life. 

Chapter 5 of our Real Life Advice Report: Advice Priorities explores the primary concerns of each generation, and the potential cost of delaying retirement planning. 

Key findings from Chapter 5: 

• 1 in 5 people will seek advice on their retirement planning in the next six months. 
• Retirement planning advice is twice as important as investment and savings advice for those aged 44 and above. 
• 55 years old is the peak age to start planning retirement – which may be too late to achieve long-held ambitions. 
• SJP analysis finds that just a five-year delay in starting pension investments can seriously reduce your pension pot at retirement.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up.  You may get back less than you invested.

“Whilst it is perhaps unsurprising that advice on budgeting better, investments and savings, and managing debt is more pressing at a younger age, now that individuals have more responsibility for their retirement finances, it’s more important than ever to start planning early.

The more time you have to build up your savings pot, the more time it has to compound, resulting in a larger pot when you retire.”

Claire Trott, Divisional Director of Retirement and Holistic Planning

The younger generation and financial advice: more of them want it, more of them can see the benefit of it – but still many hold back from seeking it. 

The final chapter of SJP’s Real Life Advice Report concludes that advice for younger generations must be more flexible, more accessible via social media channels – and more relevant than ever before.

Key findings from Chapter 6:

• For Millennials (35 -44) and Gen Z (18-34), financial planning is becoming more critical — and more complex — than ever before.
• 31% of Gen Z have already used financial advice to help with specific areas such as mortgages, managing budgets, even getting married. That’s more than ever before – and more than any other age group. 

“In today’s world, rising living costs, delayed homeownership, and the decline of traditional pension schemes have created immense pressures for younger generations. Yet, there is also the promise of the great wealth transfer for some, which could redefine financial opportunities. The intertwining of these factors makes financial planning more critical—and yet more complex—than ever before." 

Mark FitzPatrick, CEO of St. James's Place