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17th October 2017
Fewer than one in ten seek professional advice about financial protection, says HSBC
Only 7 per cent of people in the UK who support someone financially have spoken with a professional adviser about long-term financial protection, according to new research by HSBC. The global study surveying more than 13,000 people across 13 countries looks at levels of financial security and the importance of planning and preparing for a secure financial future.
The survey shows that 27 per cent of UK respondents supporting someone financially have never had a conversation with anyone about long-term financial security should something happen to them, not even friends and family. This compares with 22 per cent globally. However, unexpected life events can have knock-on financial consequences for the whole family; 81 per cent of people in the UK providing financial support said their family would not manage well if they had to significantly reduce their support to them.
Despite this reluctance to seek professional advice regarding financial protection for themselves and their family, 74 per cent of UK respondents rated their family’s health and wellbeing as the most important thing to them for the future.
The UK survey respondents who rated themselves as “managing well financially” were more likely to have had a conversation about long-term financial security should something happen to them, which is in keeping with the global trend. However, in the UK, 19 per cent of those “managing well financially” have never had a conversation about long-term financial security, compared with 46 per cent of those who see themselves as “not managing well financially”.
Among people supporting someone financially, there were different triggers for those who had a conversation about long-term financial security should something happen to them. For 34 per cent, reaching a particular age when it became relevant was a key trigger for this conversation. For 11 per cent in the UK who are parents, their children reaching a certain age prompted them to talk about this. This figure compares with 34 per cent in Indonesia and 16 per cent in France.
Mark Hussein, HSBC’s Chief Executive Officer, UK Insurance said: “Life carries many risks which can put people’s financial security under pressure, especially for those supporting someone. While it’s understandable that many people don’t want to talk about how their families would manage without financial protection, it’s an important conversation to have. We feel that advisers play a vital role in helping customers look at what they have achieved so far in their lives and then advise them on how they can protect it.”