In the fifth survey of its kind, Legg Mason found 76% of investors in the UK would not pay the average £150 an hour usually charged by advisers, and only 10% of those asked would pay more than the going rate.
More than a third (36%) of the total polled in the Global Investment Survey said they would not pay a penny for advice, with the firm’s head of Europe and Americas distribution Jusin Eede labelling it a “worryingly small percentage”.
The younger generation were more likely to want to pay for advice, with 19% of those aged 18 to 34 willing to pay £150 an hour for advice.
Only 17% of millennials ruled out paying for financial guidance completely, but more than half of baby boomers said they would refuse to pay anything at all.
The older generation were far less likely to pay for advice with only 2% saying they would pay the average of £150 an hour for help with their finances.
Eede said the variations between age groups was likely a sign of changing attitudes after the implementation of the Retail Distribution Review (RDR).
Eede said: “In the post-RDR world it is perhaps unsurprising millennials are more open to paying for advice, while older generations – who were not previously paying advisers directly – are less keen to do so.
“With the rise of robo-advisers and other online platforms, the notion of paying for face-to-face advice could come under further pressure.
“However, the fact millennials are far more likely to pay for advice than older investors suggests a brighter long-term outlook for a sector that plays a valuable role in society.”
The introduction of RDR in 2012 signalled a fundamental shift in the UK advice industry.
