Half of HNWs don't use an adviser
Almost half of UK households with a net worth of over £500,000 fail to use a Financial Planner or adviser to manage their money, according to new research.
The study by fintech provider Timeline found that 49% of affluent households manage money without a professional adviser.
Almost two-fifths of them, 38%, said they’re “working on a plan,” while more than one in 10, 12%, had no plan at all.
That's one in eight people with significant wealth operating without any roadmap for their financial future, the firm pointed out.
The research also found that many people only consult a Planner or adviser for key life happenings. Events such as retirement drawdown (43%), inheritance planning (42%) and sudden windfalls (38%) drive first adviser contact.
The company said: “What's striking about these triggers is their timing – they're all reactive rather than proactive. People aren't seeking advice to build wealth; they're seeking it when they're about to spend, transfer, or manage wealth they've already accumulated.”
Despite that, more than half, 54%, said they wished they’d sought advice earlier with retirees’ key message to younger people being “start investing sooner.”
The firm said: “This tells us something profound: the value of financial advice isn't just theoretical. Real people, looking back on their financial journeys, can see exactly where professional guidance would have made a difference.”
The study found that inflation anxiety was the top concern among those polled. Rising living costs concerned 57% overall and 67% of 20- to 39-year-olds.
Abraham Okusanya, chief executive of Timeline, said: “Too many people make life-changing money decisions alone.”
He said Timeline has just passed £10bn in assets under management (AUM). He said: “£10bn AUM is a milestone for us, but the data shows the real work lies ahead.”
• The research was conducted between March and April via GDPR-compliant online panels, surveying 2,000 affluent pre-retirees (aged 40-60 with £500k+ net worth), 1,000 affluent retirees (aged 60+ with £500k+ net worth), and 2,000 full-time employees aged 20-39.
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