People with a financial adviser much more likely to save

Less than a quarter of people have regular access to a financial adviser - but those who do are considerably more likely to be saving for their future, according to research from Standard Life.

When conducting research for the latest wave of the Standard Life Savings & Investment Index (the Index), respondents were asked if they had an ongoing relationship with a financial adviser. Of those who did, 77% said they were actively saving for the future. Of those who didn’t have access to financial advice, only 46% were saving.

76% of respondents said they didn’t have an ongoing relationship with a financial adviser.

Trevor Matthews, Chief Executive, UK Financial Services, Standard Life said, “These results highlight a stark comparison – evidence indeed of how important it is that people have regular access to professional financial advice”.

Overall, the Index results show only a slight rise in investor confidence. The Index has risen by just one point from 19 in April, to 20 in July, although it remains well above its launch level of 11 in July 2005. This quarter sees increased investor confidence in more basic savings products such as cash and short term deposits, but this is counterbalanced by a swing away from property.

Investor confidence towards pensions in particular has risen. 77% of people responded favourably when asked if it was a good time to put their money into employer pensions, with 74% in favour of personal pensions and 61% in favour of SIPPs.

ISAs remain the most popular choice of investment vehicle with a drop of only 2% from 90% to 88%.

Trevor Matthews continued, “The stock market started to fall on the 13th of July and our research took place between 13th and 20th July, so it is possible that respondents were beginning to be influenced by stock market volatility. All the same, it is heartening to see an increase in the number of people who think it is a good time to invest in pensions, after seeing a dip in the last quarter’s results. Pensions’ tax-efficient status makes them an attractive choice for those saving for retirement.”