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Why don’t people use Financial Advisers?

Published: 24 July 2025

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A recent UK FCA Financial Lives Survey reported that less than 1 in 12 adults seek financial advice from a professional adviser. This is against a background of more people than ever holding investments – another survey suggested that 42% of UK adults held investments.

So why is it that so few people seek the independent advice of an expert when it comes to their money? And how can Advisers tap into this huge, under-advised, market?

Reputation precedes us…

Despite a lot of improvements around regulation and adviser qualifications in recent years, it has been hard to shake the image of “slick” advisers using aggressive selling techniques to pressure clients into taking out products that line the advisers’ pocket rather than meet their own best interests.

It’s not helped by an often hostile media, which seizes on sensational headlines around mis-selling, scams and other financial scandals. The actions of a (very small) minority continue to taint the reputation of the industry as a whole.

A My Pension survey claims that 57% of people do not trust financial advisers, rising to 65% of people aged 55 and over.

So it’s time for advisers to change the narrative, and become much better at communicating the benefits of sound financial advice to a sceptical audience.

Earn the trust of your clients through your actions. Really listen to what they tell you, do the small and simple things well, build relationships. Be transparent, use plain language, highlight your professional qualifications and promote positive experiences of other clients.

Wouldn’t it be good to read more “good news” stories about clients that have achieved their life changing goals following sound financial advice from their adviser?

For clients, finding the right financial adviser is key. Once they do find the right fit, then a lasting relationship is not only possible, but likely. The 2022 FCA research showed that 87% of customers trusted their adviser, and 85% were happy with the advice they received. A 2025 Boring Money survey corroborated this view, with 96% of advised clients stating satisfaction with the advice they are receiving.

So the problem isn’t with the quality of advice. It’s getting potential new clients through your door in the first place.

I get my advice elsewhere

The explosion in financial websites, comparison sites, and Social Media have all muddied the waters for financial advisers, providing seemingly endless opinions and “free” advice to the general public.

A December 2022 survey of Dubai residents by Friends Provident International highlighted that over 50% of people were “confident” in taking financial advice from a Social Media influencer, with younger investors the most likely to seek advice from this source.

This plethora of information makes it both easier and harder for the general public to make their own financial decisions. With so much information at their fingertips, what can they trust?

Perhaps this explains the recent rise of the fin-fluencers. While there may undoubtedly be good advice on offer, it is by definition generic and not aligned to an individual’s needs. Particularly worrying is the rise of the celebrity fin-fluencer, where celebrities are paid to endorse financial solutions.

Despite crackdowns and increased regulation, our fascination with “celebrities” means that for many a recommendation from your favourite Kardashian may trump seeking professional, independent financial advice.

Of course social media is not just for the finfluencers. If that’s where your younger prospective clients go for their information, you need to be there too. But if you choose to “go social”, you do need to fully commit. The occasional post won’t cut through - make sure your social media presence is regular, relevant and compelling.

Seeking financial advice from family or friends remains the primary source of information for most people. Again, this applies particularly to younger people, who are most likely turn to parents or trusted friends or family members to guide their decisions. The 2025 Boring Money survey claims that 40% of under 45’s seek help from family or friends when it comes to financial advice.

So don’t neglect the children or dependents of your existing clients – eventually they may become valuable clients too.

The advent of AI

The ubiquity of Large Language Models (LLMs) like ChatGPT in all walks of life is undeniable.

And the conversational nature of their prompt responses is temptingly close to resembling real human interaction. It’s no wonder, then, that users ask them for advice on an array of topics, including their finances.

According to a survey by personal finance comparison site finder.com carried out in August 2024, more than a third (35%) of Brits would consider using ChatGPT for financial advice and a 2023 study by The Motley Fool revealed 47% of adults in the USA have used ChatGPT for stock picks.

Meanwhile, by its own admission, ChatGPT can lack nuance or be guilty of providing very generic advice.

Sometimes, though, that’s all someone believes they need, so ignore AI at your peril.

Play to your strength as a human!

Unlike AI, an adviser can build a meaningful relationship with a client, digging deeper into what they really need to do to achieve their financial goals.

LLMs can only ever talk generally, whereas you offer a personalised service.

Your expertise is backed by qualifications and/or a license, providing your clients with a comfort they can never get from what is essentially an internet search tool.

Plus, nuance is so important in the relationship between a client and an adviser – for instance, small talk about family or a fleeting facial expression during a conversation about risk appetite can reveal a huge amount about a client’s priorities.

By all means, encourage your clients to do their own research using AI, but never underestimate the human touch.

We don’t talk about money

Embarrassment about talking about money seems to be hard-wired into many of us. Indeed, surveys suggest we’d rather share information about our sex lives than we would about our financial situation.

Whether it’s shame, fear of (unflattering) comparison with others or just simply not wanting others to know how much we have, many of us remain tight-lipped when it comes to the subject of money.

This attitude affects how people spend money and how they pass on their wealth. And it perpetuates this unhelpful taboo with the next generation growing up with the same attitudes towards their finances.

As a society, we need to break down taboos about money and start talking more openly about our finances. Our future well-being may well depend on it.

We should also acknowledge that many people – even those in senior and professional roles – can feel stupid about money and therefore avoid the topic.

Our education systems don’t teach personal finance and the jargon-heavy lexicon of financial services can leave many feeling alienated and confused.

Advisers can make the world of money much more accessible by speaking in a clear and transparent way, breaking down the barriers of finance-speak and complex jargon. Try the RL360 Jargon-Buster for ways of simplifying language.

Inertia rules

Many of us realise that while we really should get round to “sorting out our finances”, it’s often easy to put off due to more immediate issues and financial priorities.

It therefore often takes a trigger moment – a major life event or change like getting married, birth of a child or a divorce - before we seek financial advice.

But why wait? And how can advisers disturb these inert clients into taking action earlier? We all know the sooner we start saving, the better. The financial services industry needs to be shouting this mantra from the rooftops.

It’s expensive, isn’t it?

“Advisers only deal with very wealthy clients.”

“It’s really expensive to get advice.”

“They wouldn’t be interested in me.”

These are objections many advisers will have heard over the years. And while it’s true that financial advice is not free, it is likely not as expensive as people imagine – especially in comparison to the financial benefit it can result in. Good legal or medical advice costs money, why should financial advice be different?

According to unbiased.com, financial advice makes people, on average, nearly £48,000 better off compared to those who don’t get advice. The same study showed that those who continued with ongoing financial advice were 61% better off than those who did not.

That’s a huge – and measurable - benefit, and often it’s those on relatively lower incomes who benefit the most.

Perceived high cost of advice is a barrier, particularly to younger clients. So make sure your client knows exactly what they are paying – good advisers should never be uncomfortable with discussing their fees.

It’s important to show that professional financial advice helps clients start and maintain long term financial planning to meet their future goals. Ongoing advice from a trusted financial adviser ensures that progress is monitored and adjusted as appropriate, taking into account changes in personal circumstances.

We also need to break the misconception that financial advice is only for the super wealthy. Explain who your typical clients are and ensure your marketing materials accurately represent and reflect your target market. If you have different advice models for different categories of clients, explain these clearly.

The reasons why people are reluctant to seek professional financial advice are therefore many and varied, but there is clearly much that the adviser community can do to market their services more effectively and to educate prospective clients about what to expect.

The benefits of good financial advice are compelling, and quantifiable, despite the many objections described above. Those adviser firms who successfully embrace this challenge can expect a considerable windfall.