British multinational wealth management company Quilter has revealed that more than seven out of ten individuals in the UAE do not currently have a financial advisor.
“Furthermore, less than half (44 percent) of those in the top income bracket of $10,890 (Dh40,000) or more a month have a financial adviser,” according to the survey by UK-based companies Quilter and YouGov.
The leading international internet-based market research and data analytics firm YouGov has surveyed 1,000 people in the UAE on behalf of Quilter.
The survey results showed that just 10 percent of 40 to 50-year-olds and only 12 percent of 51 to 60-year-olds have a financial advisor, which could mean that, these age groups are missing out on getting advice at the critical moment of their life.
Out of the various nationalities in the UAE, westerners were most likely to have an advisor, with 21 percent saying that they currently take financial advice, followed by 20 percent of Emiratis. When the respondents were asked what they would do if they had extra money to save or invest, just 10 percent commented that they would seek financial financial pieces of advice.
Brendan Dolan, global distribution director of Quilter International said, “This research shows that there is a clear need in the UAE to change the perception and understanding of advice and financial planning and the value it offers. Financial advice is about more than just investment performance. It’s about taxation, investment choices and how an adviser can help you navigate your emotions, behavioral biases, and the practicalities that life throws at you,”
“Our lives are complex and as such the value that a good financial adviser brings to the table should not be underestimated. Working with a properly regulated firm and qualified adviser should offer the guidance and reassurance that you are making the appropriate decisions based upon your individual circumstances. This should develop into a trusted relationship wherein regular reviews ensure that you continue to structure your finances appropriately.”
“It is true that there may be elements that you can put in place yourself but it is often the way in which these individual products or services interact with and potentially impact upon each other in order to build up a financial plan that can be forgotten. A financial adviser should therefore be much more than just a salesman that you see to complete a one-off transaction,” concluded Mr. Leale.