2026
9
UK Consumers and Financial Advice: 2026
2026-06-05T10:01:34+00:00
REP5C0013C6_75A8_4C5A_8013_C675A8CC5A94
2195
193913
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Report
en_GB
There is huge demand for financial advice. 72% of UK adults believe they would benefit from it, particularly in relation to investing, pensions and retirement planning. Yet, due to cost,…
UK
Financial Services
simple

UK Consumers and Financial Advice: 2026

"Digital innovation and regulatory initiatives offer financial firms new ways of engaging with consumers, as well as the means to close the advice gap."

Sarah Hitchcock, Associate Consultant – Financial Services

Sarah Hitchcock, Associate Consultant – Financial Services

UK Financial Advice Trends

  • There is huge demand for financial advice. 72% of UK adults believe they would benefit from financial advice, particularly in relation to investing, pensions and retirement planning. Yet, due to cost, only a small proportion make regular or ongoing use of a professional adviser. It’s more common for people either to use an adviser on a one-off/ad hoc basis, typically for a transaction-related reason, or never to have used one at all. Instead, most consumers rely on guidance services, which cannot make recommendations.
  • This is why targeted support is such an important development. It offers a bridge between guidance and full regulated advice, by allowing firms to make recommendations to groups of customers needing help with pensions and investments. However, only larger firms are likely to have the required capital and economies of scale to deliver it. Other firms need to work out how it will affect them, directly or indirectly; and may need to consider strategies to offset any threat to their current business model.
  • Along with new regulation, the UK advice market is being re-shaped by technological innovation, which has paved the way for new digital and AI-led services. Developments are ongoing, meaning that the digitisation of advice continues to present a major opportunity for the industry.

This Report Looks at the Following Areas:

  • The size of the UK retail intermediary market, by number of firms and revenue.
  • The main drivers impacting demand, including regulatory developments to address the advice gap.
  • Consumer experiences of financial advice within the past two years (eg whether they found it useful, paid a fee etc).
  • Financial matters/products people would most benefit from receiving advice on, and their preferred channel to receive it.
  • Most popular sources of financial guidance.
  • Likelihood of UK adults seeking guidance or advice over the coming year.
  • Attitudes toward using digital advice and guidance services.
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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for the UK financial advice market
    • Opportunities
    • Re-engage advice-aware wealth holders to drive long-term growth in regulated financial advice
    • Now is the time to develop simplified advice solutions
    • Changing regulation creates new opportunities
  2. THE MARKET

    • Snapshot – market size
    • Consumers and the economic outlook
    • What’s driving the market
    • Market size and structure
    • A leaner, fitter market post-pandemic
    • Graph 1: number of regulated retail intermediary firms and total industry revenues, 2019-24
    • Rising cost and regulatory pressures have caused the intermediary market to contract
    • Many intermediaries provide advice across a range of areas
    • Graph 2: proportional distribution of retail intermediary revenue by sector, 2024
    • Financial advisers generate most of their income via fees and charges
    • Graph 3: proportional distribution of financial adviser* revenues, by charging method and type of business, 2024
    • Competitive landscape: a range of firms offer advice and guidance
    • Regulatory developments
    • Tax changes boost demand for advice
    • FCA launches initiatives to close the advice gap
    • Targeted support gets the green light
    • Firms need to weigh up the pros and cons
    • Targeted support could be extended to the protection market
  3. THE CONSUMER

    • Experience of accessing advice
    • People seek financial advice on a range of matters
    • Many younger adults are still mistaking guidance for advice
    • Most people who seek financial advice find it useful
    • Graph 4: how much of the advice was found useful, 2026
    • Over a third of recent advice-seekers obtained free advice
    • Usage of guidance services
    • Most people obtain guidance from digital and online sources
    • Targets support offers new opportunities
    • Advice requirements
    • Huge demand for financial advice and guidance
    • Advice needs change with age
    • Graph 5: financial products/matters people would most benefit from having advice on, by age group, 2026
    • Free guidance services can help advisers connect with younger adults
    • Under-50s want help with mortgages and buying property
    • 45-64 year olds most need advice on their decumulation options
    • How to win new clients
    • Explaining fees upfront helps to build trust
    • Most people still prefer to receive advice in person
    • Stressing ‘no strings’ is key to success
    • ‘Try before you buy’ can be an effective strategy
    • Interest in digital advice and guidance services
    • There exists a good level of interest, but also barriers to overcome
    • The future’s bright for digital advice
    • Digital advisers need to cover a broad range of areas to appeal to the widest audience
    • Graph 6: financial products/matters would most benefit from having advice on, by adults interested in digital advice/guidance, 2026
  4. INNOVATION AND MARKETING

    • Providers are moving quickly on targeted support
    • Fintel to launch AI-led financial advice platform
    • NatWest embeds homebuying guidance in AI chatbot
    • Scottish Widows trials new AI-powered support tool
  5. APPENDIX

    • Report scope and definitions
    • The market
    • Market size – underlying data
    • Market size – number of firms by type
    • Market size – total revenue by type of firm
    • Market segmentation – regulated activity
    • Market segmentation – type of income earned (financial advisers only)
    • The consumer
    • Consumer research questions
    • Consumer research methodology
    • UK generation groups
    • Abbreviations

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