IFAs, all members of the Personal Finance Society, involved in MoneyPlan, saw over 1,100 clients between May 2007 and March 2009 and dealt with almost 2,400 problems. Often asset rich, but cash poor, the majority of clients were aged over 50 and owned their own homes, but had low monthly incomes.
Teresa Perchard, Director of Policy at Citizens Advice said: "The findings of MoneyPlan show a worrying gap in the availability of financial advice for people who can't afford to pay for it or know where to start to find it. It does not follow that because someone has a low monthly income that their financial situation is simple. Many of the clients seen by this project have complicated enquiries about their mortgages, pensions or questions about equity release. There is nowhere impartial for them to turn at the moment with these complex enquiries - this is something which needs to be addressed. Citizens Advice is grateful for the support of the PFS and other partners in establishing this pilot."
The MoneyPlan pilot was established with support from the Personal Finance Society and funding from Barclays, Aegon UK and the Resolution Foundation. 36 IFAs volunteered in 29 Citizens Advice Bureaux and plan to continue after this pilot period. The independent evaluation established that following advice from an IFA, two-thirds of clients had taken action with regard to their finances, and nearly 85% said that their appointment had reduced stress and improved peace of mind. For 79% of clients, this was their first contact with an IFA.
Fay Goddard, Chief Executive of the PFS, commented: "The public needs help and guidance today, more than ever. They need to be able to talk to a person they can trust, someone who can talk to them in language they understand and someone who can provide practical and impartial advice that gives them the confidence to take action. MoneyPlan has delivered all of this with resounding success.
"Working with Citizens Advice, we now need to focus on ensuring that the service is promoted and understood by consumers and I will be encouraging more PFS members to come forward to meet the growing demand for the service. Those that have participated have found it a very rewarding experience."
Citizens Advice is grateful to all the IFAs who have taken part, nearly all of whom are going to continue to volunteer in bureaux. It will be exploring how to take the results of this pilot forward and encourage the development of additional projects.
A client's story:
"A couple were approaching retirement when the husband was diagnosed and treated for cancer. He had received correspondence about his pensions but couldn't understand the options available. Due to his cancer, the client was unable to deal with seeking advice on the telephone, and wanted to be able to ask questions face-to-face. They initially went to their local CAB who made them an appointment with the MoneyPlan IFA. They took all the paperwork and the IFA "explained every page" and wrote notes for them. They were then in a position to decide what to do, as they now understood their pension options."
