Financial advice use grows - Defaqto

More people have used professional advice when considering financial products than a year ago but the majority still do not see it as necessary, according to research.

This is despite half of respondents saying they did not completely understand the products they were considering, Defaqto has said.

The survey echoes results from the ABI's quarterly consumer research, reported by COVER last week, which indicated three in ten people did not consider advice from an IFA for any financial purchase.

Defaqto's study found more than a third (36%) of people sought professional advice (including an IFA) to help them choose financial products, meaning almost two thirds (64%) did not.

However this number seeking advice has increased by 11% in the last twelve months, indicating habits may be changing.

This appears particularly encouraging given that 94% of people compare features but half (49%) of respondents did not always understand them.

The market analyst said these results emphasised the importance of independent advice in helping people make appropriate financial decisions.

It added that "with nearly half of those surveyed not fully understanding the products they are considering, there is a risk that people might buy inappropriate products".