Will taking financial advice boost your pension?

During the period between 2001 and 2006, people taking professional financial advice enjoyed an average increase in their pension wealth of nearly £31,000 after ten years, compared to those who took no advice.

Alongside the monetary benefits, people taking financial advice also said they felt more confident and had control over their finances.

The study also has shown that engaging in an ongoing relationship with a professional financial adviser has given savers a longer-term benefit.

Research from Royal London has shown that working with an adviser over the ten years and with regular communication, a saver could enjoy an average boost to their pension pot of nearly 50%.

Less well-off people get more significant benefits from professional advice.

People who have less financial and pension wealth benefitted more from taking financial advice than wealthier individuals according to the ILC report. Those that the report defined as ‘just getting by’ achieved a greater boost to their finances, despite starting from a lower funds value.

Following financial advice, the average saver in the ‘just getting by’ group had their pension pot boosted over the decade by 24 per cent (£35,054), compared to savers in the same wealth class who didn’t receive advice.

The long-term value of financial advice.

Although comprehensive, the ILC study only looks at a small snapshot of ten years, but, people are starting pensions younger and saving for a lot longer now thanks partially to auto-enrolment pensions.

Savers will be building up their pension pots throughout entire careers, which could be 40 years or even longer, so taking financial advice earlier can seriously increase the monetary benefits.

People surveyed were coming towards the end of their careers; these savers will be looking to secure their income over their retirement, which could be another 20 to 30 years.

Due to the nature of compound interest and investment growth, the benefits from professional advice should continue to increase over time, resulting in even bigger rewards for people taking advice compared with those that took no advice.

The financial and emotional benefits of advice in a snapshot.

To summarise the benefits of financial advice, the below graphic shows the key stats from the study run by the ILC with support from Royal London.

How to take that first step?

Making the first step today and speaking with our friendly and professional team today could benefit you greatly in retirement.
Call 0161 413 7051 or contact us online for more information about us.

Hilltop Finance is authorised and regulated by the financial conduct authority under no. 787803. Our advisers have over 100 years of combined experience and knowledge of working with people like you and helping them to make the most of their finances.