Poor financial advice driving UK savings gap, says report

Bad financial advice – and people who become scared off investing as a result of taking bad advice – are being blamed for shortfalls in UK savings and investment rates.

More than two fifths of adults in the UK say that they have received bad financial advice, and a quarter of those never receive compensation for their loss.

In addition to the pensions accounting and mortgage scandals of the 1990s, many of those who have lost out made the mistake of relying on the advice of friends and family for financial know-how, however.

Experts have voiced concern that many do not know where to turn when they need advice on how to find the best savings account deals or investments over the long term.

“Our research shows that 43 per cent of people who have taken financial advice in the past think it was bad advice,” said Adam Taylor, spokesman for invest06.

“Although we must stress that the market has ‘cleaned up its act’ after the pensions miss-selling debacle of the 90s, it does go some way to explaining why so many people in the UK are putting off their financial future.”

Potentially more worrying than the numbers who have received bad advice are the quarter who have never sought out advice at all, added Mr Taylor. Almost a third of respondents said that they did not know where to turn for financial advice.

© Adfero Ltd

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