In a poll of 2,000 individuals by YouGov on behalf of Deloitte, 84% are not even aware of the Retail Distribution Review and that from the beginning of 2013 they will have to pay for financial advice.
More than half (54%) have said they will refuse advice rather than have to pay a fee while just under half (47%) would see an adviser less frequently if charged between £400 and £600, or 3% of invested assets.
This attitude is not only from those with no savings – 97% of who would not pay for financial advice – as 14% of those with £50,000 or more in savings would not be prepared to pay for advice.
When looking at how they get advice, IFA clients are five times less likely (12% compared to 60%) to blanche at paying a fee than bank customers.
“The advice gap – the shortfall between the amount of advice required and that provided – is likely to increase as advisers leave the industry or focus on wealthier customers,” commented Andrew Power, lead RDR partner at Deloitte.
“These changes pose a huge challenge to banks, building societies, insurers and asset managers who will have to find new ways to distribute their products, and advisers who will have to persuade consumers of the benefits of paying for financial advice.”
Seb Cohen, head of insurance research, added: “Customers of banks and insurers are less likely to pay for advice than the customers of IFAs, and the lower the level of savings a consumer has the more likely they are to reject paying an advice fee.”
This announcement is the first in a series of reports to be published by Deloitte with the full research paper expected early in September.