Online advice is fine but one-to-one is better

Despite the reported popularity of internet use amongst the over-50s and the emergence of the ‘silver surfers’, new research shows that today’s retirees prefer human interaction when either researching or getting advice on financial matters.

Prudential’s research shows that less than a quarter (24%) of over 50s would consider using the Internet to research a financial product as they are opting to speak with friends & family as well as their bank or product provider.

The human touch
Whilst over two thirds of respondents (70%) stated that they are more confident in making financial decisions now than when they were younger, the research highlights that most still prefer human interaction during the financial advice process. 71% of the over 50s would like to receive advice face-to-face, with just 15% stating they would like to receive advice over the phone.

While it is apparent that some (24%) of the over-50s are still utilising the online approach as part of their information gathering, many are opting for the traditional offline approach. One-to-one interaction such as speaking to their bank or building society or their friends and family, top the list of preferred research methods (41% and 40% respectively) instead.

Women controlling their own finances
Prudential’s research further found that women are more confident than men in making financial decisions in their 50s and beyond. Seventy Four% (74%) of women stated they are more confident now, than when they were younger – compared to only 66% of men.

And while women state that they are more confident in their financial decision making than before, they are also using a different method to research the options available to them. Women opt for ‘real life’ recommendations as their first choice, naming their friends and family as their first port of call for financial research. Men, in contrast named speaking to their bank and building as their first choice for researching financial products.

Buying financial products the traditional way
When asked about which financial products the over 50s would prefer to buy the ‘traditional way’ – having met face-to-face with a financial representative, over two thirds (39%) stated savings products, followed by investment products (35%).

Ali Crossley, director for lifetime mortgages at Prudential comments: “It is interesting to see that while more and more financial services are available to us online, for many people this only provides part of the solution to understanding more about their financial needs.”

“While it is important to have online facilities that provide information on financial products, our research has shown that face-to-face advice resonates strongly with customers.”

“In line with this result, we have recently launched a face-to-face sales force, advising on Prudential’s flexible lifetime mortgage. Extending our commitment to allow customers access to qualified Prudential advisers who can visit and talk to people in their own home, at times and in surroundings they are comfortable with, is a logical progression for our business.”