In the financial advisory sector, there’s a common narrative that 95% of the UK population does not receive financial advice annually, primarily due to limited wealth and high adviser thresholds. This phenomenon is often labelled as “the advice gap.” I propose a different perspective: this isn’t an advice gap; it’s a “support gap.”
Redefining the Gap
Financial advisers typically focus on long-term savings and investments. However, the reality for most people, especially during a cost of living crisis, is that their immediate financial priorities lie elsewhere. These include increasing earnings, managing debts, and building emergency savings—areas often neglected by traditional financial advisory services.
An adviser I spoke with recently highlighted a significant issue: the impracticality of monetising brief advisory interactions which don’t warrant extensive paperwork like fact-finds or suitability reports. His solution? Encouraging donations to a brain cancer charity in lieu of fees. This anecdote underscores the inefficiency in the current system and the necessity for change.
The Real Priorities
For the majority, who possess less than £100,000 in savings, the financial priorities are clear:
- Enhance earnings sustainably.
- Minimise unnecessary expenditures.
- Reduce debts.
- Establish emergency reserves.
- Secure earnings and savings through insurance.
- Aspire to build significant savings on DIY platforms.
- Optimise tax liabilities.
- Develop a comprehensive lifetime cash flow forecast.
Once these foundational elements are in place, the need for traditional, regulated financial advice becomes relevant—applicable mainly to those with substantial investable assets.
A Sustainable Support Model
The concept of financial self-sufficiency is not just plausible but practical with the right resources. Here’s how we can bridge the support gap effectively for less than the cost of a weekly Latte (£19 per month):
1. Comprehensive Financial Education Library: MoneyFitt
Replace informal advice sources with a structured library filled with courses, videos, and interactive content designed by independent experts. This library aims to eradicate financial illiteracy and includes specialised content for various life stages.
See these case studies:
- Woman in her 60s
- Boomer who has built wealth
- Middle-aged woman lacking money skills
- Young expat enjoying life abroad
- Family looking to the future
2. Lifetime Cash Flow Forecaster: HapNav
This tool integrates with Open Banking to provide a detailed view of your financial situation, helping you understand your current position and future needs through a user-friendly platform.
3. Short-term Financial Planning Tool: Flipside
A 12-month cash flow modeler to navigate immediate financial hurdles, whether it’s managing student finances, starting a new business, or planning a budget.
4. Insurance Advisory: Life Search
Discuss your insurance needs with a LifeSearch adviser to receive tailored, fee-free advice and quotations from leading UK insurers.
5. Financial Activation Measure
Gauge and enhance your financial management skills through our bespoke test, with continuous opportunities to monitor and improve your capabilities.
6. Kokoro Quiz for Wellbeing
Assess and track your holistic well-being across physical, mental, emotional, and spiritual dimensions to ensure financial decisions enhance overall quality of life.
7. Unlimited Email Support
Direct access to financial planning advisers via email, ensuring you have a professional sounding board for any financial queries within two working days.
8. AI-Powered Financial Planner
Instant, round-the-clock advice through an AI-driven platform, offering personalised guidance tailored to both financial and broader life planning questions.
Continuous Improvement and Expansion
The support package will continually evolve, incorporating new tools and resources such as business planning templates, regular webinars, and an exclusive VOD channel for ongoing education.
Conclusion
Addressing the support gap requires a shift from traditional financial advice to a more integrated, education-focused approach. By providing comprehensive, affordable, and accessible financial education and planning tools, we empower individuals to manage their finances effectively, paving the way for a financially informed and capable society.
For more information and to access these resources, visit www.planningmy.life.
By equipping people with the knowledge and tools to manage their financial lives independently, we not only close the support gap but also foster a more financially resilient population.
Academy of Life Planning 