Younger people depending on parents for money advice

• 49 per cent of people under 30 seek financial guidance from family members
• Only 35 per cent of those over 30 have ever taken guidance on financial matters from their parents
• However 48 per cent of young people would seek information online to support their parents’ recommendations
• 34 per cent of people regret financial decisions they have made, rising to 47 per cent of those under 30

Nearly half (49 per cent) of adults under 30 are relying largely on their parents to guide them through financial decisions, according to new research from unbiased.co.uk and MetLife. The figure suggests a rising trend, given that just 35 per cent of those over 30 said they had ever taken financial advice from their parents.

The 2015 Value of Advice report found that adults in their 20s are the group most likely to turn to their parents for financial advice, and that 16 per cent of them value financial advice from their parents more than advice on other areas of their life.

Surprisingly, only eight per cent of people overall value online resources more than parental input when it comes to making financial decisions. However, one in five (19 per cent) say they would supplement their parents’ advice by doing online research, with this figure rising to 33 per cent of those in their 20s.  One in ten would approach this the other way round: searching online first and then consulting their parents. Only 16 per cent said they would not consult their parents about financial decisions.

People are most likely to seek their parents’ input on decisions about long term financial products, including ISAs (13 per cent), savings accounts (13 per cent) and first-time-buyer mortgages (12 per cent).

The research also suggests that by basing their decisions on inadequate information, people are having regrets about the products or services they choose. Of those who have bought financial products, 34 per cent have made decisions they regret. This figure is higher for those under 30, at 47 per cent (compared to just 27 per cent of over 50s).

Karen Barrett, chief executive of unbiased.co.uk, comments: ‘This research shows that today’s young people are thinking about their finances more than any recent generation. Taking on board your parents’ experience is a good starting point, and you know they want the best for you. However, much as they would love to, most parents can’t provide the specialist insights or market knowledge that you need for such decisions.

‘Our discovery of high levels of financial regret – people of all ages recognising that they’ve made poor choices in the past – should be warning enough. By not obtaining proper information at the time decisions are made, people risk being much worse off in the longer term. Speaking to friends and family can give you anecdotal knowledge, and searching reputable websites can broaden your understanding, but only independent professional advice can provide the vital blend of expertise combined with a focus on your best interests.’

Simon Massey, Wealth Management Director at MetLife, comments: ‘Independent professional advice can genuinely change people’s lives for the better, and this is backed up by the evidence from the research that more than a third of people have made financial decisions they regret.

‘People need certainty about their finances in order to be able to plan for the long term. Independent advice can help with that. The good news is that the launch of new pension rules is making the case for independent financial advice, and it will be interesting to see the impact on attitudes in the next few years.’

Consumers can obtain free financial checks through unbiased.co.uk. Whole-of-market financial advisers are available for initial meetings to offer mortgage reviews, as well as introductory sessions on investment,pensions, and overall financial health:

For a free and confidential search for a whole-of-market financial adviser, visit www.unbiased.co.uk

ENDS

Notes to editors:

*unbiased.co.uk research conducted by Opinium Research between 27 February to 2 March 2015, among 2,002 nationally representative UK adults aged 18+.

For more information contact:

Anna Schirmer/ Sarah Tye/Calum MacDougall, Lansons: 020 7294 3682

For expert commentary or case studies from over 200 media-friendly advisers, journalists should visitunbiased.co.uk Bluebook - The Media IFA Network

Twitter: @unbiased_co_uk

LinkedIn: unbiased.co.uk - Online networking for professional advisers

About unbiased.co.uk – the advice supermarket

Helping over one million visitors a year, unbiased.co.uk is the UK's No 1 adviser search, connecting consumers with the biggest and most versatile search for regulated and independent advisers. We match consumers and businesses to over 24,000 IFAs, financial advisers, mortgage brokers, solicitors and accountants. We make it easy to find the right advice by providing information, insights and tools to facilitate consumer choice.

Unbiased Ltd promotes the benefits of financial and legal advice to consumers and businesses and would like to thank the following companies for their support: Alliance Trust, Aviva, AXA Wealth, Canada Life Ltd, Legal & General, Lockton, MetLife, Opinium Research, Prudential, Royal London, Santander Asset Management and Standard Life Assurance

Unbiased Ltd - Registered Office: 12-14 Berry St, London, EC1V 0AU.  Registered in England: No. 06775878