The ‘advice gap’ has grown further during the course of 2024 so far, according to research from Boring Money.
Over 12.4 million adults in the UK now fall in the gap, across both investors and cash savers with more than £10,000, according to the research.
The Boring Money Advice Report 2024 also revealed just 9% of UK adults receive financial advice, which accounts for only 21% of all investors .
The headline 12.4 million number includes 9.2 million ‘low confidence non-advised’ investors and 3.2 million cash savers.
The report’s data was sourced from a nationally representative study of 3,000 UK adults in April 2024, and a survey of 1,000 advised investors with more than £100,000 in assets, carried out in April and May 2024.
See also: Parmenion adds hat-trick of MPS firms to platform
According to the Boring Money researchers, those in the advice gap need help and advice, report low confidence, and yet have the financial means and willingness to invest their money.
From the point of view of advisers, there is a big opportunity evident, with the research finding that 1.3 million people in the advice gap are potential new clients for traditional financial advisers, because they want personalised advice, have high incomes and are happy to pay a fee.
See also: The asset allocator diary: John Husselbee
Boring Money CEO Holly Mackay said: “Targeted Support could really move the dial. There is a clear need and appetite for lower-cost, lower-touch ‘People Like Me’ solutions although consumer suspicion about conflicts of interest will be a vital thing to tackle head-on.
“Interestingly we found clear interest amongst those with higher assets, as well as those with smaller accounts. I think this will present new business opportunities for many and could also be an escape route for wealth managers, struggling to manage the demands of ongoing servicing and deliver value for money for those accounts in the £100,000 region.”
See also: IHT receipts climb by £400m to record breaking £7.5bn
