"The lack of trust in independent financial advisers is alarming – it is a wakeup call that the financial services industry cannot afford to ignore."
The percentage of adults who distrust advisers rises to 65% among those aged 55 and over.
26% of those surveyed said they have previously been pressured by an adviser into purchasing a financial product without fully understanding what it was, while 13% have lost money having followed the recommendations of an adviser within the past year.
75% also believe that independent financial advice is too expensive.
My Pension Expert’s research also revealed that an overwhelming majority (78%) of people would be more inclined to seeks advice from IFAs if harsher punishments were introduced for advisers engaging in unethical practices. A similar number (76%) also called for greater transparency around how advisers calculate their fees.
Andrew Megson, executive chairman of My Pension Expert, said: “The lack of trust in independent financial advisers is alarming – it is a wakeup call that the financial services industry cannot afford to ignore.
“Financial advice is not all smoke and mirrors. It genuinely helps people to make informed decisions about their financial strategies, from savings and investments to life goals and retirement. However, poor past experiences, heavy-handed sales tactics, complicated fee structures and unnecessary jargon are all making people turn their backs on IFAs.
“The industry must act to change public perception of financial advice. IFAs must be more transparent, use plain language and any untoward practices have to be punished. Otherwise, Britons will only become more reluctant to seek financial advice. And in the current economically volatile climate, this could prove disastrous for people finances.”
