Employers not trusted to provide financial advice

One in five (19%) respondents do not trust their employer to provide financial advice or planning, according to research by Deloitte.

Bridging the advice gap: delivering investment products in a post-RDR world, which surveyed more than 2,000 employees, found that workplace saving could become a growing market for advisers and providers because it will help to close the UK’s financial advice gap following the introduction of the retail distribution review (RDR) on 31 December 2012.

Under the RDR, all independent financial advisers (IFAs) and employee benefits consultants will be remunerated on a fee, rather than a commission, basis.

The research also found:

  • 33% of respondents would pay for an in-house financial adviser provided by their employer.
  • 18% of respondents would use more financial planning services through their workplace if these were offered by their employer or by a third party acting on behalf of their employer.
  • 27% of respondents do not want their employer to know more about their financial arrangements.

Andrew Power, lead RDR partner at Deloitte, said: “The RDR and introduction of adviser charging poses significant challenges for advisers and providers.

“One option for them is to increase work-based financial advice, although there are hurdles to overcome.

“Deloitte’s research indicates people will be willing to use a work-based adviser, particularly if their employer shares the cost of advice. Dealing with a larger number of people at an office also gives advisers an opportunity to reduce the cost of advice.”