Taking professional financial advice is on the rise according to survey

The Momentum UK Team 16 November 2011

The number of people using professional financial advice has increased by 11% across the last 12 months according to a recent survey by Defaqto, a financial research company.

The survey also found that while 36% now seek professional advice to help them choose financial products, up from 25% last year, 49% of respondents did not always understand product features on financial products they are considering.

The figures suggest that though more people are turning to professional financial advice, many are still left in the dark when it comes to understanding financial products and as a result could end up with products that are unsuitable for their needs.

75% of the 2500 consumers surveyed said they felt confident selecting certain types of financial product unaided, but said they would want to seek professional financial advice for more complex products in areas such as retirement planning.

The financial product market is notoriously complicated with a huge variety of options on offer, and according to Ady Leggett, Defaqto's Insight Analyst for Wealth Management, this latest survey shows that some consumers are still caught in a "struggle to understand financial products".

The Defaqto survey comes hot on the heels of an annoucement earlier this month that the government led Money Advice Service is to undergo cuts to jobs and services in the near future.