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£67,625 is the Amount UK People Would Need to Invest Before Seeking Financial Advice

New research from Nucoro, the Fintech company providing bespoke white-labelled technology, focused on delivering wealth management solutions to third parties, reveals that on average people would need to invest a minimum of £67,625 before seeking support from a financial adviser.  For some 28% of retail investors, the sum is over £100,000.

How much would you need to invest before seeking financial advice from an adviser  Percentage of UK retail investors
Less than £5,000 11%
Between £5,000 and £10,000 12%
Between £10,000 and £25,000 14%
Between £25,000 and £50,000 18%
Between £50,000 and £100,000 17%
Over £100,000 28%

When asked which investment advisory service would provide the best returns on their money, 28% of retail investors said an independent financial adviser, but 27% thought that they could achieve the best returns if they managed the money themselves. Some 14% said another type of financial adviser accessed through their bank, or work for example would deliver the best returns, and 8% said using a robo-adviser would do this.

However, Nucoro’s findings show that retail investors expect financial advisers to work hard for their fees.  When asked what they would expect to pay in fees on a £50,000 investment, 68% said less than £500. One in five (20%) said between £500 and £999, and 12% said over £1,000.

Alarmingly, Nucoro’s research reveals that some retail investors are finding it hard to secure access to advice, with 6% saying they have been turned away in the past by financial advisers because they did not have enough to invest.

Nikolai Hack, COO Nucoro said: “Our research shows strong demand for financial advice when it comes to people managing their investments. However, the growing regulatory and compliance costs means that some financial advisers are having to insist on larger minimum levels of investments from investors before agreeing to take them on as clients. 

By outsourcing much of their technological and digital requirements to a specialist third party like us, wealth managers can not only reduce their costs but also improve their levels of efficiency and service, enabling them to take on more clients.”

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