Advisers can learn from low-cost initiatives of solicitors to enable more people to receive financial advice, according to national advice business Foster Denovo.
Speaking to New Model Adviser®, Foster Denovo financial adviser Jamie Smith explained how some solicitors offer wills to customers at a lower cost over an allocated month of the year in order to assist those who are unable to afford it otherwise.
In the advice market, ‘there is the capacity to run a similar initiative’, Smith suggested. This could help to bridge the advice gap and enable more people to understand the value of advice.
He said that while initiatives like Financial Planning Week are a good start to encouraging more people to seek financial advice and get a taste of what can be offered, more can be done by advisers.
Smith added: ‘Our recent white paper found that almost three quarters of 40 to 55 year-olds lack an understanding of what their pension pot means for them at retirement… This needs to be addressed.’
He explained that while the advice sector is currently looking to assist the baby boomer generation with their retirement plans and final salary pension schemes, as well as looking to cater to millennials’ needs, those who have been referred to as Gen X are lacking the financial knowledge that they need.
Smith also highlighted the positive work of the Forces Money Plan, where some advisers offer pro-bono financial guidance to injured armed forces personnel and veterans who wouldn’t have otherwise had access to professional financial assistance.
‘We now need to consider the next group of people who aren’t getting advice, whether that be extending the offering to navy, air force, etc. or also beginning to offer financial education in schools and advice and guidance more widely in the workplace’ Smith said.