The true costs of UK money management

The Paradox of Financial Advice

Did you know that in the UK, there are about 28,000 financial advisers and around 5,500 firms offering financial advice? Yet, only about 3 million households are actually paying for that advice, despite the fact that there are over 28 million households in the country.

So, what’s going on? Why are so few people seeking professional financial advice when it could make such a difference in their lives? Is it that they don’t have enough money to pay for it, or maybe they’re just unsure if it’s worth the cost?

In this post, we’re going to explore why more households aren’t seeking financial advice—and offer some easy, practical ways to change that so more people can benefit from professional guidance.

Why Are So Few Households Paying for Financial Advice?

If you’re reading this, you might be wondering: “What’s the deal with financial advice? Why do so few people actually use it?” There are a few key reasons why this happens, and many of them have to do with misconceptions or misunderstandings. Let’s break them down.

1. It Feels Too Expensive

Let’s start with the big one: cost. Many people assume that financial advice is something only the rich can afford. When you think of a financial adviser, you might picture someone with a fancy office, charging a hefty fee based on how much money you have to invest. And, let’s be honest, that doesn’t sound very appealing when you’re just trying to get your finances in order without breaking the bank.

But here’s the thing—financial advice doesn’t have to cost a fortune. In fact, there are plenty of advisers offering affordable options these days. Some charge flat fees for specific services, while others offer subscription models, kind of like paying for a gym membership. You pay a small monthly fee and get access to ongoing advice whenever you need it. And in some cases, you can even get a free initial consultation to see if it’s right for you. It’s more accessible than people often realise. At Invesdi we offer an alternative route.

Our research tells us that UK initial advice fees range on average from 0.5% to 3%. The total average Annual Ongoing Charges range from 1.85% to 2.40%.

2. “I Don’t Think I Need It”

Another reason people avoid financial advice is simply that they don’t think they need it. After all, if you’re not planning for a huge financial event, like buying a house or retiring, why would you need an adviser? Financial advice seems like something you get when you’re dealing with really complex issues, right?

Actually, financial advice is helpful for pretty much everyone, no matter your stage of life or income. Whether you’re struggling to save for an emergency fund, paying off debt, or just looking for a way to make your money go further, a financial adviser can help you figure out the best strategy.

Think of it like going to a personal trainer—not just for the heavy lifting, but for learning the basics, too. You don’t have to be in financial trouble to need guidance. Sometimes, a little advice can go a long way in helping you get on the right track.

3. Trust Issues: “How Do I Know They’re Legit?”

Let’s be real: the financial world doesn’t have the best reputation when it comes to trust. Scandals, frauds, and the occasional rogue adviser have given people a reason to be cautious. And who can blame you for being wary about handing your hard-earned cash over to someone you don’t know?

But here’s the reassuring part: financial advisers in the UK are regulated by the Financial Conduct Authority (FCA), and they need to meet certain standards to practice. They also hold qualifications that ensure they know what they’re talking about. Plus, you can check whether an adviser is FCA-registered or belongs to professional bodies like the Chartered Insurance Institute (CII). So, if you choose an adviser who’s properly certified, you can have confidence that you’re in good hands.

4. It Feels Too Complicated

A lot of people also think financial advice is all about complicated investments and jargon that’s impossible to understand. Who wants to sit through an hour-long meeting trying to figure out where to put their money, right?

The truth is, good financial advice is all about simplifying things. A professional adviser’s job is to help you understand your options in plain language. Whether you’re dealing with a savings plan, retirement strategy, or budgeting, an adviser will break things down in a way that makes sense to you. It’s about empowering you to make informed decisions, not confusing you with complicated financial mumbo jumbo.

The Financial Advice Gap—Why It Matters

So, why should you care about this gap in financial advice? Well, it’s not just about making sure people get good advice. It’s about helping people improve their financial wellbeing. With rising living costs, unpredictable job markets, and all the uncertainty around retirement planning, not getting the right advice can put families in a vulnerable position.

For example, if you don’t know how to save efficiently or how to manage your debt, you could be losing out on opportunities to grow your money or get rid of financial stress. Financial advice helps you avoid costly mistakes, make smarter decisions, and plan for the future. Without it, you might end up feeling stuck or overwhelmed by your finances.

How Can We Make Financial Advice More Accessible?

Alright, so we’ve talked about why so many people don’t seek financial advice. But here’s the good news: there are plenty of ways to make financial advice more accessible to everyone. Let’s look at some simple solutions that could make a huge difference.

1. More Affordable and Transparent Pricing

If cost is a barrier, the financial advice industry needs to do more to offer affordable, clear pricing. Instead of charging high fees that only the wealthy can afford, we need to see more flat-fee and subscription-based services that allow regular people to get the advice they need without draining their savings.

There are already advisers who offer this, so don’t be afraid to shop around and find someone whose pricing works for you.

2. Better Financial Education

Let’s face it—most people don’t understand what financial advisers actually do, and that’s a problem. If people knew how much financial advice could help them with everyday stuff like budgeting, saving, and planning for the future, they might be more likely to give it a try.

More financial education in schools and through public initiatives would go a long way in changing this. Imagine if you were taught basic financial planning skills from an early age! Plus, advisers themselves can help by offering free workshops, webinars, and easy-to-understand resources to educate people about their financial options.

3. Government Support and Incentives

What if the government provided some kind of support for people to access financial advice, especially for lower-income households? A programme that helped people get free or low-cost consultations could be a game-changer. There are already services like the Money Advice Service that offer free guidance, but expanding these resources could make a big impact.

4. Embrace Technology

The rise of technology is a huge opportunity to make financial advice more accessible. Apps and online platforms can provide quick, affordable, and easy-to-understand financial advice—without the need for an expensive face-to-face consultation. Whether it’s budgeting apps, robo-advisers, or online workshops, there are loads of tech tools that can help people get started on their financial journey.

5. Making It Simpler

Finally, we need to make financial advice less intimidating. Financial jargon is one of the biggest turn-offs for people, so advisers should focus on clear, simple language that’s easy for everyone to understand. When advice is accessible, straightforward, and practical, it’s much easier for people to take that first step.

A Better Alternative: Working with a Financial Coach at Invesdi

If you’re wondering, “How can I get affordable financial guidance without the high cost of traditional advice?”, there’s an alternative approach that might be just what you’re looking for: working with a financial coach at Invesdi.

At Invesdi, financial coaching is designed to be more accessible, flexible, and tailored to your specific needs. It’s not about managing large investments or making complex decisions—it’s about giving you the tools and knowledge you need to make smarter money moves, no matter your income or life stage.

Financial coaching is perfect for those who want a step-by-step approach to improving their finances, whether that’s budgeting, saving, planning for big expenses, or setting long-term goals. And with Invesdi, you can get the support you need at an affordable price—without the high fees of traditional financial advice.

Think of it as having a trusted guide to help you on your financial journey, giving you the confidence to make decisions that work for you—without breaking the bank.

Ready to take control of your financial future? Get in touch with a financial coach at Invesdi today, and start building the path to a more secure, confident financial life.