How many financial advisors are there in the UK?
According to International Adviser, the number of financial advisors in the UK was in steady decline from 2010-2017, but the numbers have started to increase again. Whilst still down on the 49,599 advisors in 2010, the number of advisors stood at 36,616 in 2019. International Adviser reports that the majority of these are independent financial advisors (IFAs).
What do financial advisors actually advise on?
Financial advisors provide a multitude of services and seek to develop long-term relationships with their clients. Services include family protection, insurance, tax advice, managing spending and savings, planning for retirement, mortgages, investments, pensions, long-term care and preserving wealth down the generations. Above all else, a qualified financial advisor should provide you and your family with peace of mind.
How much does financial advice cost?
The cost of advice obviously depends to an extent on the work involved and amount of time taken. Within this there are different charging structures from flat fees to hourly fees to a percentage of your assets. Hourly fees are typically £50 to £250 per hour. If you work on a percentage then typical initial fees are 1-3%, and an ongoing charge between 0.25-1.0%. If there is an ongoing charge then your advisor should provide an ongoing service to justify the charge. This could be regular reviews or meetings to ensure that your financial plan is still suitable for your individual circumstances.
How many people use financial advisors in the UK?
It's estimated that one in ten people take financial advice on investments, saving into a pension or retirement planning each year according to Financial Reporter.
Where to look for financial advice
With the number of different financial advisors specialising in different areas, and the choice of tied or independent advisors, different charging structures and fees, it can seem daunting in where to look for financial advice. There are a number of websites that provide detailed information on advisors, including their background, qualifications, areas of expertise and reviews from other clients. This can help to simplify where to look. Recommendations and referrals from other people are also useful.