Family Advice Favored Over Professionals for Financial Decisions, Survey Finds

A recent survey indicates that individuals are more inclined to seek advice from family members than from financial professionals when facing significant financial decisions. The research, conducted by wealth manager Mattioli Woods, found that only about 10% of people feel comfortable handling crucial money matters, such as investments, pensions, and retirement planning, entirely on their own.

Despite this hesitation to go it alone, a notable percentage of respondents expressed confidence in managing substantial sums without professional input. Approximately 26% stated they would feel comfortable investing between £10,000 and £50,000 without consulting a financial advisor. This figure rose to 34% among men, compared to 19% among women.

Overall, the study revealed that 41% of individuals would turn to relatives for guidance on major financial decisions. In contrast, 31% would consult a financial advisor, and 23% would utilize financial websites or online resources. An additional 19% would seek help from a bank or building society, with the same proportion consulting friends and colleagues.

The research also highlighted demographic differences in financial advice seeking. Older adults were found to be more likely to seek paid financial advice, a trend attributed to their potentially more complex financial situations and greater assets. Younger individuals, however, showed a greater tendency to rely on family for major financial decisions.

While 30% of respondents indicated a desire for professional advice on all major financial decisions, 21% felt sufficiently confident to manage their pensions and retirement independently. Concerns about finances were widespread, with 40% worried about rising bills and housing costs, 39% concerned about unexpected healthcare or long-term care expenses, and 33% anxious about potential income loss due to inability to work.

Furthermore, 44% of those surveyed do not feel financially prepared for significant future life events. When asked about the ideal age to commence long-term financial planning, the average response was 28 and a half years.

Amit Joshi, managing director of wealth at Mattioli Woods, commented on the findings, stating, 'It is understandable that people turn to family and friends when faced with an important financial decision.' However, he cautioned, 'decisions around investments, pensions and long-term financial planning can have unanticipated and significant consequences that last decades.'

The survey included nearly 2,100 adults and was weighted to be representative of the UK population.