| Financial advice alone is not enough to save | | | | and ten who were left in the financial |
| Britons from financial precariousness, it has | | | | wilderness. |
| been revealed. | | | | |
| | | | "So for 12 months the ten households were |
| A spokesperson for AXA, Rachel West, has | | | | taken on a financial journey. If they had |
| claimed that even when afforded access to a | | | | debt, we'd look at that first, then look at |
| financial advisor, Britons' financial | | | | short to mid-term savings, moving on to |
| difficulties still remain unresolved - | | | | pensions. Some people had company schemes |
| because many people are not motivated enough | | | | that they could join but just couldn't be |
| to take measures to ensure they remain in the | | | | bothered. Those who had access were on |
| black. | | | | average about £5,000 per household better |
| | | | off than those who were left to their own |
| According to Ms West, AXA's summations are | | | | devices. Their savings pot, as a group, |
| based on an experiment carried out on 20 | | | | dipped." |
| households. While ten households on one side | | | | |
| of a street were made to visit a financial | | | | However, despite this revelation it was also |
| advisor once a month for a year, the other | | | | found that people are reluctant to consult a |
| ten households on the other side of a street | | | | financial advisor - even when they realise |
| were allowed to manage their finances as they | | | | that it could result in cost savings and |
| saw fit. | | | | improved savings account balances. |
| | | | |
| At the end of the study, the households which | | | | "The incredible thing was getting people |
| visited financial advisors were found, on | | | | motivated to do it," Ms West said. |
| average, to have £5,000 more to put in | | | | |
| their UK savings accounts than those who | | | | "You can have advice there, but trying to get |
| didn't. | | | | people to engage and to bother to turn up for |
| | | | meetings... that sort of thing is a hurdle. |
| "For a 12 month period we tested whether if | | | | We actually offered the people on the other |
| you have access to financial advice, it makes | | | | side of the street, the chance to spend time |
| you better off, not only financially but also | | | | with [a financial advisor], and despite |
| emotionally, if you look at the levels of | | | | knowing how well their neighbours did, nobody |
| stress," Ms West confirmed. | | | | actually took up the offer. |
| | | | |
| "For 12 months we had 20 households taking | | | | "Having advice is all very well but it's |
| part, ten on one side of the street who had | | | | about how you motivate and engage people," |
| access to an independent financial advisor | | | | she concluded. |