Paul Mitchell | Financial and Retirement Planning Coach
Find him here at: Your Smart Retirement Coach
Bridging the UK’s Financial Advice Gap: How Financial Coaching Can Help
In recent years, the issue of the UK’s financial advice gap has become an increasingly urgent concern for consumers, regulators, and the financial services industry alike. According to the Financial Conduct Authority (FCA), this gap leaves millions of UK adults without access to affordable, reliable financial guidance. While many people need help to make informed decisions about pensions, retirement planning, budgeting, or investments, the cost and complexity of regulated financial advice puts it out of reach.
But what if there were another way to get support—something more accessible, more affordable, and just as empowering?
That’s where financial coaching enters the picture.
What Is the Financial Advice Gap?
The FCA defines the advice gap as the space where people want or need financial guidance but do not receive it. According to the FCA’s Evaluation of the Retail Distribution Review and the Financial Advice Market Review (2020):
- 39% of adults had £10,000+ in investible assets, but only 8% received regulated advice.
- Many cited cost, complexity, or distrust as reasons for avoiding professional advice.
The problem isn’t just about investing—it’s about everyday decisions like:
- How to access and manage pensions
- Budgeting for retirement
- Paying down debt or managing savings
- Understanding tax allowances or benefits
Why Is Regulated Financial Advice Out of Reach for Many?
There are several factors behind the widening gap:
- Cost – Regulated advice typically costs between £1,500–£3,000 for a full retirement plan or pension transfer advice. Ongoing advice can cost 0.5%–1% of assets under management per year.
- Minimum Investment Thresholds – Many financial advisers only take clients with £100,000+ of investable assets. Those with smaller pots may be turned away.
- Perceived Complexity – Consumers often feel overwhelmed by financial jargon and worry they’ll be judged for not knowing enough.
- Regulatory Constraints – Advisers face tight regulations from the FCA, making advice more process-heavy, cautious, and expensive to deliver.
The outcome? Everyday people with modest needs are left without help.
What Is Financial Coaching?
Financial coaching is a form of guidance that helps individuals:
- Clarify their financial goals
- Understand their options
- Build confidence around money decisions
- Develop better money habits
Unlike regulated financial advice, financial coaching does not recommend specific financial products. Instead, it focuses on education, motivation, and empowerment.
A financial coach might help a client:
- Build a retirement spending plan
- Understand how pensions work
- Set and achieve savings targets
- Prepare questions for a financial adviser
How Financial Coaching Helps Bridge the Advice Gap
- Affordable and Accessible
- Coaching is typically priced much lower than regulated advice, making it an entry point for those with limited budgets.
- Sessions are often offered via phone or Zoom, increasing convenience.
- Empowers, Not Sells
- Coaches don’t sell products. This means advice is purely focused on the client’s understanding and confidence.
- People are often more comfortable opening up in a non-sales environment.
- Supports the Advice Process
- Coaching can prepare clients to engage with regulated advisers more effectively.
- It helps them ask better questions, gather necessary paperwork, and understand basic terms.
- Increases Financial Literacy
- Financial coaching builds foundational knowledge in budgeting, pensions, tax planning, and more.
- This leads to more informed citizens who are better equipped to make financial decisions.
- Ideal for Life Transitions
- For people nearing retirement, recently divorced, widowed, or facing redundancy, coaching can offer immediate clarity without costly advice fees.
What Financial Coaching Is Not
To be clear, financial coaching is not a replacement for regulated financial advice. Coaches cannot:
- Recommend a specific pension provider or investment fund
- Transfer your pension
- Manage your money on your behalf
However, coaching fills the gap before advice is needed—or when advice is not cost-effective.
What Does a Financial Coaching Session Look Like?
Sessions may include:
- Clarifying financial goals (e.g. “Can I afford to retire at 60?”)
- Reviewing budgets, income and outgoings
- Explaining pension access rules (e.g. flexi-access drawdown)
- Exploring trade-offs (e.g. downsize vs equity release)
- Creating a timeline for retirement planning actions
Many clients describe the experience as calming, educational, and confidence-building.
Why the UK Needs More Financial Coaches
The FCA has acknowledged that alternative models of support—like guidance, coaching, and digital tools—may be part of the solution to closing the advice gap.
In 2022, a Money and Pensions Service (MaPS) survey revealed:
- Only 42% of UK adults feel confident managing their money
- Over 11 million people do not have even £100 in savings
Coaching may not solve every problem, but it could help hundreds of thousands take their first step toward financial stability.
A Real-World Example
Jane, 62, was unsure whether she could afford to retire early. She had three small pensions and a small mortgage remaining. She didn’t want to pay thousands for a financial adviser, but needed clarity.
*Through financial coaching, she:
- Learned how to request updated pension values
- Discovered her State Pension forecast
- Identified monthly spending needs
- Created a withdrawal strategy that would last until age 85*
She later chose to engage a regulated adviser—but felt more prepared and less intimidated.
Final Thoughts: The Future Is Hybrid
In a world where few can afford full financial advice, coaching can act as the bridge—supporting people with basic knowledge, empowering them to make informed decisions, and complementing regulated advice where necessary.
For those aged 50–70 especially, coaching can provide the clarity, structure, and support needed to:
- Understand your pensions
- Prepare for retirement
- Make smarter choices
Want to Bridge the Gap for Yourself?
At Your Smart Retirement Coach, I offer:
- ✅ One-to-One Financial Coaching Sessions
- ✅ Retirement Clarity & Confidence Planning
- ✅ Help understanding pensions, goals, and spending plans
👉 Book a Free Coaching Consultation
Take the first step toward financial clarity—without the cost of full advice.
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Disclaimer
These insights provide strategic coaching perspectives. This is NOT regulated financial advice. Individual circumstances vary, and it is crucial to consult qualified financial professionals for specific financial guidance.
Individual cases are illustrative and not predictive of future results. Actual savings and support needs will differ based on personal financial situations.
About the Author
Paul Mitchell is a dedicated Financial and Retirement Coach (Qualified To Chartered Financial Planner status) with over 35 years of experience in financial services. Through Your Smart Retirement Coach, he helps clients build confidence in their financial future and create fulfilling retirement lifestyles. As a retirement transition coach, I’m committed to empowering investors with knowledge, perspective, and strategic support.
Book a free 15-minute consultation to start your journey toward financial clarity.
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