EFPA reports lack of financial education
One third of clients of European financial advisers have a below average understanding of financial concepts and little interest in receiving detailed information on their investments, according to a survey conducted by the European Financial Planning Association (EFPA).
The survey, which was conducted among 1289 European financial advisers, stressed the increasing importance for people to realise that financial support from government sponsored schemes is shrinking and their financial decisions today will have a major impact on their future financial well being, EFPA said.
Financial advisers in Austria, Czech Republic, Germany, France, Italy, Portugal and Spain, told EFPA that five out of ten European savers accept almost all their advisers financial recommendations and asset allocation propositions without further discussion.
“This underlines that the role of qualified financial advisers is crucial, as only someone with adequate skills and competences can explain, in plain vocabulary, the financial concepts involved in this type of advice,” the report read.
Among these clients, 44% are aged between 40 and 65 years old, and therefore need special guidance on how to complement their state pension, in an environment of low interest rates and declining public benefits.
When asked about their investment preferences, the advisers surveyed said that six out of ten clients tend to be wealth protectors/asset consolidators, while another 28% are looking for asset growth, assuming more risk.