Advisers play a ‘pivotal role’ in later-life planning
People who have sought financial advice are more likely to have taken action to prepare for later life and the transition of wealth, research by Canada Life has revealed.
The insurance provider has published a report focused on the 100-year life. It examines what living longer means practically, financially and emotionally.
It found that, while overall 15% have sought professional advice on inheritance and intergenerational wealth planning, those who have consulted a financial adviser are much more likely to have discussed their intentions with family members.
Two-thirds of those who use an IFA have discussed their intentions, compared with 44% who do not have an IFA.
Meanwhile, 62% of those who use an IFA have written a will, compared with 32% of those who do not.
And 28% of those who use an IFA have established power of attorney, compared with 11% who do not.
“Those who use an IFA are more prepared for all later-life eventualities than those who do not, including funding their long-term care, financing their retirement and making sure their loved ones are looked after once they die,” Canada Life said, in its report.
These figures highlight the notable benefits of using professional advice. Expert guidance is often a starting point for wider discussions with those closest to us.
“Our research suggests many more people could benefit from doing this to prepare for later life and facilitate the transfer of wealth.”
The report also suggested that, overall, people who use an independent financial adviser are more likely to feel satisfied and in control of their lives than those who do not.
Canada Life reported that 75% of respondents who use an IFA are satisfied with their lives, compared with 61% of those who do not use an IFA.
Almost six in 10 (58%) who use an IFA feel in control, compared to just over two-fifths (44%) of those who do not use an IFA.
The research found that 54% of the UK population have used professional advice, which includes IFAs, bank or building society advisers, solicitors, accountants, mortgage brokers, insurance brokers or stockbrokers.
Under a quarter (23%) have used an IFA.
The propensity to use professional advice, and an IFA specifically, closely correlates with age. Those 55 years and over are more likely to use both than the under-55 age groups.
In addition, 52% of those under 35 can see the benefit of accessing professional financial advice – higher than for any other age group.
However, 42% do not know where to turn for advice, suggesting a need for better access to information and reassurance.
Lois Vallely, Money Marketing
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