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Millions of people will benefit from money advice at key times in their lives

Citizens AdviceCitizens Advice has responded to the Financial Advice Market Review (FAMR).

The national charity, which deals with around 1.8 million debt and financial issues each year, has highlighted how being able to access money advice at key times in their lives, like buying a home or having a baby, will go a long way in helping people manage their finances.

It has also said that recommendations from the public funded guidance consultation will need to complement these reforms.

Gillian Guy, Chief Executive of Citizens Advice, said:

“The right guidance and advice can be key to a secure financial future.

“Our evidence has found that 23 million people fall into an advice gap at some point in their lives.

“For too long price has stood in the way of people accessing the advice they need.  The FAMR recommendations to broaden theadvice options available, such as paying for advice on specific issues like ISAs and using technology to provide advice, will help to make advice more affordable.

“But cost is not the only barrier, access is also a challenge.  Citizens Advice previously highlighted how a pensions dashboard and being able to get money advice at key stages in life, such as starting university, having a baby or buying a home, would be really beneficial so it is good to see that this has been recommended by the review.

“Getting the balance right between increasing people’s access to advice while making sure they are protected is also vital.  The decision to reject the longstop will give consumers more confidence to pay for advice and provide them with important protections.

“The Financial Advice Market Review has outlined some important steps to help bridge this gap and we look forward to hearing how the review of public funded guidance landscape will support this.”

Citizens Advice’s report, The Four Advice Gaps, published last year, reveals the number of people who would have used moneyadvice at key stages of their lives had it been available:

●     More than a third (35 per cent) when they start working or change jobs.

●     Over 1 in 4 (28 per cent) when buying a home.

●     37 per cent when going through a divorce or separation.

●     More than 2 in 5 (44 per cent) when seriously ill.

●     38 per cent after a bereavement.

The findings are based on an online YouGov survey of 2,041 adults carried out between 2nd – 5th October 2015.

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