Many Clients Ignore Financial Adviser Recommendations

23% of investors ignore their financial adviser’s recommendations.

Scottish Widows’ research highlights an “honesty gap” and growing interest in AI‑supported financial planning.

Why Clients Ignore Advice

1.1 Withholding Information

• 34% held back relevant information
• Advisers could not factor in missing details
• Leads to unsuitable or incomplete recommendations

1.2 Advice Doesn’t Feel Right

• 33% felt the advice wasn’t right for them at the time
• 27% didn’t understand the expected outcome
• 28% said the advice conflicted with their values

1.3 Competing Sources of Influence

• 29% followed friends or family instead of their adviser

2. The Rise of AI in Financial Planning

2.1 Growing Interest

• 63% are considering low‑cost AI tools for basic planning
• Among advised clients, this rises to 72%
• 24% are very likely to use AI if available

2.2 Human + AI Hybrid Preference

• 49% see AI as a good starting point
• Still want human specialists for complex decisions

2.3 Human Contact Still Matters

• 36% prefer human advisers from the start
• Only 9% want a fully digital, no‑human experience

The “Honesty Gap”

3.1 What It Means

• Clients withhold information
• Advice becomes less accurate
• Risk of poorer long‑term outcomes

3.2 Why It Happens

• Discomfort sharing personal details
• Fear of judgement
• Lack of clarity about why information matters

3.3 Why It’s a Problem

• Advice quality depends on full transparency
• Missing information = unsuitable recommendations
• Trust becomes harder to build

What Advisers Can Learn

4.1 Improve Clarity

• Explain recommendations in plain language
• Show expected outcomes visually
• Reinforce how each piece of information affects the plan

4.2 Align With Client Values

• Explore ethical, lifestyle, and personal priorities
• Integrate values into investment and planning decisions

4.3 Embrace AI as a Complement

• Use AI tools for onboarding, data gathering, and modelling
• Free up adviser time for deeper, human‑led conversations

4.4 Strengthen Trust

• Encourage open disclosure
• Create a non‑judgemental environment
• Reinforce confidentiality and purpose

FAQs

Why do consumers ignore financial advice?

Main reasons include withheld information, unclear outcomes, misalignment with values, and influence from friends or family.

What is the “honesty gap”?

It refers to clients withholding relevant information, which reduces the accuracy and suitability of advice.

Is AI replacing financial advisers?

No. Most investors see AI as a starting point for simple tasks, not a replacement for human expertise.

Why do consumers prefer AI for basic planning?

AI tools are low‑cost, fast, and feel less intimidating for initial fact‑finding.

Do consumers still want human advisers?

Yes. Only 9% prefer no human contact. Most want a hybrid model: AI for basics, humans for complex decisions.