Covid-19 invites only a quarter of people to seek financial advice

Although Covid-19 causes financial uncertainty, only a quarter (27%) of UK adults say the pandemic has prompted them to seek financial advice, according to a new study from MetLife UK.

This means that almost two in three consumers (64%) have not obtained financial advice.

The study, which examined consumers’ perspective on the housing market, as well as the attitudes, behaviors and experiences of those who have bought or are in the process of buying a property, found that the reasons for not asking for financial advice differ greatly. Although 38% do not intend to, 5% cannot afford it, 9% have not yet decided and 13% have not yet done so, but may need to do so in the future .

When asked what their biggest financial concern was for the next six months, 16% admitted to having reduced income. The same number were also concerned about getting into debt and having to dip into savings to make ends meet, with research showing that getting into debt and having to use the savings is also a long-term concern – 16% of people have stated that it was. their biggest financial concern for the next six months and next year.

As our finances have become a key topic of discussion over the past year, respondents were asked who they turned to for financial advice. While almost a quarter (24%) would turn to banking, more than a fifth (22%) a financial advisor and 21% a mortgage advisor / broker, a significant number are now turning to less traditional avenues.

The highest percentage of all, almost a third (29%) of people admit to turning to financial experts and influencers such as Martin Lewis for their financial advice needs. 21% would turn to online and media / news sources for advice, but only 4% would turn to social media influencers.

Rich Horner, Head of Personal Protection at MetLife, comments:

“The pandemic has put the finances of many people in an unexpectedly difficult situation and while some have been able to save more in lock-out, many others have faced job losses, reduced incomes and hardship. . As a result, our research shows that over a third (27%) of people felt pressured to take financial advice in order to further shed light on their current financial situation or get their finances back on track. It’s a smart move because financial advice can make a big difference in the way people think about their future. It can help them better understand how to protect what is most important to them with valuable insurance policies, as well as help them plan for the future by developing a savings and savings strategy. investment.

“But there are still a number of factors that stand in the way of people – 5% say they can’t afford to seek financial advice, 15% haven’t yet and 9% n haven’t decided yet if they want to. to seek financial advice. Postponing that first date is nothing new, but it can hurt people’s finances in the long run. The sooner you ask for financial advice, the sooner you can start making a plan for your future goals and making sure you have the right protections in place in case the unexpected happens. If the last year has taught us anything, it’s how unpredictable life can be.