New research published by Boring Money has confirmed growth in the Advice Gap in 2024 but confirms that some measures in the Advice Guidance Boundary Review could lift millions out of this Gap.
20 June, 2024
The Advice Report 2024
12.4 million adults in the UK, encompassing both existing investors and cash savers with more than £10,000 in cash, fall into the Advice Gap.
Those in the advice gap need help and advice, report low confidence, and yet have the financial means and willingness to invest their money. The number includes 9.2 million low confidence non-advised investors and 3.2 million cash savers.
9% of UK adults have financial advice today – just 21% of all investors .
Research from Boring Money’s Advice Report 2024 shows the Gap has increased as there are more investors than before. Reported confidence amongst investors has fallen marginally, thus increasing the need for support and help.
As at Q1 2024 there were 10.4 million DIY investment accounts in the UK and DIY assets hit fresh highs of £420 billion.
The Advice Guidance Boundary Reviewed has proposed various measures to help tackle the Gap.
Boring Money tested the appetite for both Targeted Support and simplified advice. The report concludes that Targeted Support has the potential to lift 5.3 million adults, with collective assets of over £250 billion, out of the Advice Gap.
Boring Money CEO Holly Mackay comments, “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.”
Not all in the Advice Gap need new propositions to lift them out of it. 1.3 million in the Gap are the pipeline for tomorrow’s traditional financial advisers – they want personalised advice, have high incomes and are happy to pay the fee for this advice at such time as they perceive the need.
