Half the population have never sought financial advice

New research by Zurich has revealed that 57% of the UK population aged 18 and over has never sought advice from a financial adviser. The research was undertaken to understand how UK consumers are planning for their financial futures.

Unsurprisingly, 84% of 18 to 24 year olds say they have never sought financial advice. While you would expect this figure to decrease dramatically as people get older, a staggering 64% of those aged 25 to 34 say they have never sought advice. Interestingly, this figure levels out to around 50% for those aged 35 and over. Worryingly, the levels do not decrease after this point suggesting that financial wisdom does not always come with age.

Marriage and family life also appear to be a deciding factor in whether to seek financial advice. Worryingly, 48% of those married or co-habiting with children admit that they have never sought financial advice. This is the very group that most needs advice, as individuals must plan for their dependant's financial future, as well as their own. This figure rises to 53% of those co-habiting without children. However, a staggering seven out of ten (70%) of single people surveyed say they have never sought advice, rising again to 73% of those who are in a relationship but live alone.

There were also significant regional variations, with six in ten Londoners admitting that they have not sought advice. This rose to a shocking 65% in the midlands, followed closely by the West Country where 63% say they have not sought advice. Yet this did fall to 49% in Wales, followed closely by 47% in North Scotland; suggesting that the Scottish and the Welsh may have a thing or two to teach the English.

Out of all those who say that they have never sought advice, exactly half claim it's because they do not think they have enough disposable income to make seeing an adviser worthwhile, which rises to more than two thirds (69%) in North Scotland, and (62%) in the West Country.

Overall, a fifth (20%) surveyed say that it is just too expensive to have an adviser. The second most cited reason is that individuals contacted their banks (16%) when they needed financial advice, and almost one in eight (12%) rely on friends and family for advice.

Tony Solomon, Director, Life Marketing, Zurich, said: "The sheer number of people walking blind into their financial decision-making presents a disturbing trend in society and an alarming picture for the future. It is troubling to know that more than half of the population has never sought financial advice at a time when they most need it.

"Today's volatile markets present both a challenge and an opportunity to financial advisers to add real value and to demonstrate their expertise. With the burdening debt crisis and current economic situation, people need financial advice now more than ever; yet an alarming 71% of individuals are not even considering reviewing their finances. The decision to seek financial guidance is a step in the right direction towards setting up a long-term plan to survive the credit crunch and prepare financially for their old-age.

"We believe the challenge for the future lies in promoting the importance of financial advice, especially to the younger generation who might not realise the value it offers."