SMF | Talking Money: Is financial advice for all a realisable vision?

Kindly sponsored by AEGON

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Talking Money: Is financial advice for all a realisable vision?

Date: Tuesday 16th September 08:00 - 09:00

Location: Royal Bath Hotel Bay View Room

Speakers: Vince Cable MP Alistair Matthews, Pfeg Ian Mulheirn, SMF Otto Thoresen, Chief Executive, AEGON

Chair: tbc

Financial decisions, whether or not to get a credit card, buy a house, which provisions to make for retirement, become ever more complex. In addition, our working lives are becoming more challenging; a job is not necessarily for life anymore and retraining, sabbaticals and part-time work have become normal features of our lives. In such an environment it is crucial that consumers are aware of the consequences their actions have and, on that basis, make informed choices about their financial future. Sound financial decision making is more important than ever in the current economic climate and yet many people, especially those in at risk groups, do not seek out financial advice before making major decisions.

A related issue is that of education. Current levels of financial capability are distressingly low. The Financial Services Authority launched its National Strategy for Financial Capability in 2003, four years later the Treasury report Financial Capability: the Government’s Long-term Approach followed advocating, among other ideas, the incorporation of financial education in the national curriculum.

The problems associated with a lack of financial capability and poor take up of financial advice are well recognised, but policy-makers are still in search of a coherent solution.

Questions for the debate:

Why don’t more people seek financial advice, whether from consumer associations, Government or from the financial services industry?
Should the government be looking for solutions which avoid paternalistic policy intervention? What are these solutions and how can they be effective?
The people most in need of advice are often those least likely to seek it out, for example those on below average income, how is this challenge best tackled?
Where should advice be provided from and how it can be accessed. E.g. taking into account time constraints, other life pressures and considering what might be seen as trustworthy sources.
Is it desirable to teach financial capability in schools? How can adults improve their level of financial capability? What support and services would be needed and who should this be supplied by?

Is there room for cooperation between the financial services industry, government and the Financial Services Authority?