60% of 40+ UK investors refuse to pay more than £50 for investment advice

Three-in-five wealthy 40+ UK investors are not prepared to pay more than £50 an hour for investment advice, with a large portion refusing to pay anything at all, according to a survey by Legg Mason Global Asset Management.
The survey, which polled more than 5,000 high net worth investors around the world, found that 60% of UK investors aged 40 or over place little or no value on the services of investment advisers.
In total, 39% said they would never pay any amount for financial advice, while a further 21% said they would pay no more than £50 per hour – well below the average hourly rate for a financial adviser. According to a survey by unbiased.co.uk in 2014, the average adviser charges £150 an hour.
Of the remaining UK respondents in the survey, 37% indicated they would pay £50-£250 per hour for investment advice, while just 3% said they would pay more than £250 per hour.
UK millennials, however, place far more value on advice, with more than half (53%) of those aged 18-39 open to paying more than £150 per hour, and just 9% unwilling to pay anything.
They also have more trust in professional financial advice, with 88% having trust in their financial adviser, ahead of the global average of 87% and the European average of 83%.
Adam Gent, Head of UK Sales at Legg Mason, said: “More than three years after the introduction of the RDR it appears that the majority of wealthy investors over 40 are not prepared to pay the going rate – if anything at all – for investment advice. That is a surprise given this demographic is the best placed to pay for advice in a fee-based environment, suggesting many investors continue to undervalue the services of investment advisers.
“Interestingly, millennials seem to be far more open to paying for investment advice, with more than half prepared to pay more than £150 an hour and less than one in 10 unwilling to pay any amount. Perhaps younger investors, having been in markets for a shorter period of time, are simply less inclined to assume the responsibility themselves, and possibly more accustomed to paying upfront fees. Either way, their willingness to pay for advice bodes well for the long-term health of the advice sector.”