A new study on financial advice and consumer behaviour has found that those who take financial advice are substantially better off with greater savings and investments and have a much higher level of awareness of sustainable investing.
The research, undertaken for Brokers Ireland, and conducted nationwide by iReach Insights using a sample size of 1,000, found that 80pc of those who take financial advice own a pension, compared to 35pc who have not. Also, the average pension pot is €130,525 for those who take advice and €84,230 for those who don’t.
The research also found that in life assurance, those who sought advice have €147,426, while those who have not sought advice have €100,373.
38pc of adults in Ireland have used financial advice with 39pc of this group citing a financial broker as their trusted financial advisor.
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The study also found that consumers rate very highly the explaining of charges and product features in simple English with almost nine in ten (86pc) saying it was the most important consideration when engaging with an advisor.
These findings are broadly similar to comparable studies in the UK, Australia and Canada, according to Rachel McGovern, Director of Financial Services at Brokers Ireland.
“One of the thorny issues in financial advice is that it’s often not until people seek professional advice that they begin to realise the importance it can make in their lives,” she said. “And it’s not only in financial terms but it also brings a very strong sense of security and confidence, as this study shows.”
The report shows there has been a dip in consumer sentiment across some areas of financial security and confidence since 2021. This is likely attributable to inflation; increased cost of living, and continuing geopolitical tensions.
Ms McGovern said in a highly digitalised world where technological advances and AI are increasingly impacting society, consumers need to keep their finances on track and proactively identify financial opportunities and potential risks and plan for both.
