Consumers confused by financial services, suggests research

Wed, 03 May 2006

The majority of consumers are confused by the array of financial products on offer, a study reveals.

According the financial services research company Defaqto, investments, pensions and protection products baffle as many as five out of ten adults.

Its research suggests that just 38 per cent of people, approximately 17.6 million adults, say they actually understand investment products, pensions and protection plans.

This confusion has resulted in many seeking advice from independent financial advisers (IFAs), with 6.2 million people intending to visit IFAs in the next year for advice over their pension or investment options.

Neil Morgan from the research company said that it is important for consumers to take more responsibility for their finances, including investment and pension products.

"However it is clear that many people do not understand these crucial financial products which are important in securing a comfortable retirement, funding day-to-day living and protecting ourselves and our families if the worst happens," he said.

He added that his company's new Aequos Engage search engine will help improve the level of advice IFAs can provide consumers, by allowing them to quickly search through a range of product options.

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