Despite all the demands of modern life – from lack of time and digital overload to changing life circumstances such as divorce, illness, redundancy or caring responsibilities – recent figures from the Financial Conduct Authority revealed fewer than one in ten (8.6%) of UK adults sought professional financial advice on their investments, pensions, or retirement planning in the 12 months leading up to May 2024. This suggests most Britons are making crucial decisions about pensions, investments, and retirement planning without professional guidance. Is this ‘DIY’ approach an expensive mistake, leading to lost investment returns and poor financial decisions?
Financial scams on the increase
Going it alone may be particularly risky given that financial fraud has become so prevalent. Reported fraud cases surged by 14% last year, reaching a record 3.13 million incidents, with losses amounting to £1.17bn. With fraud becoming more sophisticated, it’s now increasingly difficult to spot when a scam is taking place. Data suggests one-third (33%) of high-net-worth individuals have fallen victim to financial scams or cybercrime in the past six months. Social media was the most common method used by scammers (30%) followed by email and phone calls.
Meanwhile, data from Action Fraud revealed that more than £649m was lost to investment fraud in 2024. It received 25,843 reports related to investment fraud in 2024, with those aged 55 to 64 suffering the greatest financial loss.
It’s always reassuring to have a qualified professional in your corner that you can trust to always act in your best financial interests.
Is financial advice really worth paying for?
Over the years, studies have demonstrated that individuals who receive professional financial advice tend to accumulate significantly more wealth over time compared to those who do not. Research by the International Longevity Centre UK, found individuals who received financial advice between 2001 and 2006 accumulated, on average, £47,706 more in wealth by 2014–2016 than those who did not seek advice. This wealth increase consisted of around £31,000 in pension pots and £16,000 in non-pension financial assets. Notably, the study highlighted that individuals with more modest means experienced a greater proportional benefit from financial advice than their affluent counterparts. In other words, financial planning can make a huge difference to someone’s wealth, even if they don’t consider themselves as ‘wealthy.’
That’s a really important point because time after time we hear of people not seeking advice because they don’t think they have enough money to do so, don’t let that misconception hold you back.
The same research indicated that individuals who maintained an ongoing relationship with a financial planner – getting financial advice at both the beginning and end of the study period – had nearly 50% higher wealth than those who only received advice at the outset. This suggests continuous engagement with a financial planner leads to better financial outcomes over time.
How financial planning can help you achieve financial freedom
Getting professional advice on what to do with your money is, without doubt, one of the best ways to achieve your financial goals. Financial planning is valuable because it’s tailored to you. It’s all about communication and taking time to understand your lifestyle, long-term ambitions and comfort with investment risk, to build a plan that aligns with all three. Then talking through the range of options available, explaining how different products and investments work, and helping you decide what’s right for you. Any recommendations will be tailored to your needs, aiming for the right balance between affordability and suitability to help you move forward with confidence.
Good financial planning is designed to last. A good plan grows and evolves with you, adapting as your priorities and circumstances change. There’s also the added benefit of tax efficiency, finding ways to structure your finances more effectively, helping you save money and keep more of it working towards your goals.
Regular financial planning can help keep you on track
Regular reviews give structure to your long-term financial journey, helping ensure your plans stay aligned with your goals year after year. Even if nothing major has changed in your life, markets shift, tax rules evolve and investment performance varies. Regular reviews allow time to fine-tune your plan, check that your portfolio is still well balanced and make sure you’re making full use of any allowances or opportunities. They also help build clarity and confidence, giving you space each year to reflect, ask questions and stay actively engaged with your financial future.
Supporting your financial journey
Financial planning is about more than just numbers. Yes, it can boost investment returns and improve long-term outcomes – but its real value often comes from the peace of mind it brings and the confidence it gives you to pursue your goals. It’s a process that evolves with you, helping you make informed decisions, spot opportunities and stay financially secure as life changes. It’s also about building a relationship with someone you trust, someone who’s there to support your financial journey at every stage
Whether you’re planning for retirement, thinking about your children’s future or simply want more control over your finances, professional advice can help you feel confident and ready for whatever comes next.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.
