Perceived barriers to financial advice are deterring up to 11 million adults in the UK from seeking support with their finances, according to a study from St. James’s Place (SJP).

SJP’s Real Life Advice Report surveyed 12,000 people to understand how financial advice and guidance affects individuals and families across the country.

It found that a third (33%) experienced the ‘relevance barrier’, whereby they believed that their personal situation was too simple to require advice.

Meanwhile, 8% had not considered financial advice as they were not aware of its potential benefits (the ‘perception barrier’), rising to 14% of 18-34 year olds.

One in seven (14%) of 18-34 year olds and 6% of over-55s felt it was either too early or too late to take advice (the ‘timing barrier’).

Across the UK, 24.6 million people have never accessed any kind of financial advice or guidance, according to the findings.

Chief executive officer at SJP, Mark FitzPatrick, said: "Financial advice and broader guidance can transform lives, but millions are not reaping the benefits because perceived barriers are holding them back.

"Many believe their circumstances don’t warrant advice, they’re unaware of how it might help them, or they feel it’s too early or too late to take that leap. As a result, they’re missing out on the improved financial and emotional wellbeing advice can bring.

"Too often advice or guidance is seen as only for the two extremes: For the very wealthy or for those in financial strife. We have to come together to break down these indisputable barriers."

SJP called for focus on closing the gap between guidance and full holistic advice, describing the Advice/Guidance Boundary Review as a “critical opportunity” for change, and also called for the training of more advisers.

The firm’s research explored the positive impact that financial advice and guidance has on people’s lives, finding that 84% of people who receive advice or guidance felt it benefitted them mentally or emotionally.

This figure rose to 92% among those who receive ongoing financial advice from a qualified firm or individual, with 33% feeling more confident, 26% feeling less stressed, and 25% feeling less vulnerable.

Nearly two-thirds (65%) reported an improvement in their quality of life - rising to 75% for those who receive ongoing financial advice - with a more comfortable retirement (32%), the ability to afford larger purchases like holidays, home repairs and weddings (24%) and the ability to save more (25%) the top factors in this.

Furthermore, almost half (47%) said taking financial advice had enabled them to reach a specific life goal or tackle one of life’s hurdles.

This rose to nearly three in five (58%) among those receiving ongoing financial advice.

"While more advice or greater access to financial guidance won’t solve all of the challenges people face today, it can help people from all walks of life to establish a sense of financial control,” said FitzPatrick.

"The FCA’s proposed Advice/Guidance Review is a real opportunity to increase access to support and a moment to come together more widely to find solutions to the increasing pressures we face on our future finances.

"At a time when the wealth gap between the generations continues to grow, the first rung of the housing ladder feels further out of reach and the responsibility for our retirement falls more firmly on our shoulders, our industry must do more to break down the barriers and connect people with the support they could benefit from.

"Until we do this, millions will stop short of aspirations that are well within their reach."

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