Almost three in four (72 per cent) think that getting financial advice is important, according to research by Scottish Widows.
The poll, which was carried out by Yonder and surveyed 2,004 UK adults in July 2023, revealed that although many see financial advice as important, less than a half (46 per cent) feel confident putting financial advice they have been given into practice.
Only two in five (41 per cent) feel more comfortable about their financial position after they have received financial advice.
Looking at protection, the survey found that nearly nine in 10 (12 per cent) who signed a rental contract had no conversations about protection insurance, while seven in 10 mortgage owners spoke with someone about protection insurance.
Most spoke to their mortgage consultants (38 per cent), financial advisers (22 per cent), or their bank (17 per cent).
Additionally, a quarter (25 per cent) of renters have some form of protection insurance compared to 42 per cent of mortgage holders.
Affordability and perceived lack of need for protection insurance are driving people to avoid taking it out.
Around a third (32 per cent) said they don’t have protection because they can’t afford to pay the premiums, 27 per cent don’t think they need it and one in five (20 per cent) never thought about it.
Almost one in ten (9 per cent) don’t understand how it works at all, or don’t think they could get it all due to existing medical conditions (8 per cent).
Of those with a protection policy in place, 35 per cent have never had it reviewed since inception, with this rising to 43 per cent for those over 55 years old.
Rose St Louis, protection director at Scottish Widows, said: “We can see that people recognise the value of financial advice, but there is a real opportunity for intermediaries to support those currently slipping through the net and start valuable conversations around protection.
“When you pair the fact that almost half of tenants spend over 30 per cent of their income on rent with current cost of living pressures, highlighting the options they could have to provide that peace of mind would help remove additional financial worries that they might not think about until it’s too late.”
Additionally, the research revealed that mortgage holders would rely on their savings (27 per cent) or their partner/ spouse’s income (16 per cent) to cover being unable to work.
Almost one in three (31 per cent) of renters would rely on state benefits to cover the rent, while 17 per cent said they simply don’t know how they’d pay it if they couldn’t work due to illness.
The most common reasons that influence people to take out protection include: decisions requiring large financial investment, such as buying a house (33 per cent) or starting a family (15 per cent).
Lifestyle changes like moving in with a partner (6 per cent) also play a role or getting married (7 per cent).
