Despite fears that consumers would be unwilling to pay for financial advice post the retail distribution review (RDR), AXA's latest Big Money Index has found that one in four consumers are willing to pay for financial advice, the same number as pre-RDR.
Amid continuing economic volatility and persisting uncertainty about where to invest, consumers not only appear to be seeking professional financial advice to manage their finances, but they are as happy to pay for it as they were pre-RDR.
While the wealthier segments remain the most likely to turn to professional financial advisers, 25% of young professionals are happy to pay for advice to assist with money management.
AXA Wealth Elevate managing director David Thompson said: "AXA's latest Big Money Index would suggest that pre-RDR concerns that consumers would be less willing to pay for financial advice as it became more ‘transparent' seem to have been unfounded. The number has remained consistent over the past 12 months, suggesting the RDR has not damaged the industry as some commentators may have feared.
"A core aim of the RDR was to establish financial advice as a profession akin to solicitors or accountants, and while it is still relatively early days and the longer-term impact of the RDR is yet to be fully realised, this research is a reassuring early indicator.
"As economic uncertainty and financial pessimism continue, consumers are willing to pay for professional financial advice to help make the most of the money they have. It will be interesting to see how this trend develops, as the effects of the RDR begin to bed in over time."
