ONE IN FIVE ‘SAVE LESS BECAUSE THEY CAN’T GET FINANCIAL ADVICE’

  • Customers would save on average £134 a month extra if they had advice
  • One in three under-35s would save more if they could get advice
  • Nearly three out of four would consider becoming a customer of a bank or building society which offered financial advice, Nottingham Building Society research shows

More than one in five are saving or investing less because they cannot access advice on how to handle their money, new research* for the Nottingham Building Society (The Nottingham) shows.

Its study found 21% of adults believe they are not saving as much as they could and would be able to put away an extra £134 a month on average if they could get financial advice – the equivalent of more than £1,600 or three weeks’ average earnings before tax**.

It is younger savers and investors who need the support with their finances the most, The Nottingham research shows. Nearly one in three (30%) of under-35s believe they are not saving enough because of a lack of advice compared with just 12% of the over-55s questioned.

The first base rate rise in 10 years combined with rising inflation is making the need for advice more important but The Nottingham’s research shows customers are struggling to get help. Around 20% say they have struggled to access advice on savings in the past two years and 11% have struggled to get advice on investments.

Banks and building societies are increasingly being considered as a potential source for independent advice – around 73% of adults say they would consider becoming a customer of a bank or building society which provided advice services. However, branch closures are making it more difficult to access advice, The Nottingham warns.

It has transformed its branch proposition to offer a wide range of financial advice-based services including support on savings products, and independent whole of market advice for mortgages and financial planning.

David Marlow, Chief Executive of The Nottingham said, “It is very worrying that people are missing out on saving and investing simply because they struggle to get independent advice.

“The recent rate rise and increased competition among providers means there is more choice than ever but at the same time people clearly need more help to decide what is right for them and their individual circumstances.”

”Branch closures are making it difficult for savers to get the advice they need to make major financial decisions.  As a mutual building society, we have a significant role to play in helping members to plan for the future which is why we are expanding our branch network and providing our unique combination of advice and service all available under one roof.

“We would urge other banks and building societies to review the services their branches offer to make them more appealing and if they are planning closures we’d urge them to spend more time trying to find a competitor that can open new branches in their place.”

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