TL;DR
The Lang Cat’s Advice Gap Report 2025 reveals that only 9% of UK adults have taken financial advice in the past two years. Cost, trust, and accessibility remain major barriers. With Consumer Duty reshaping how firms serve smaller clients, advisers are innovating through subscription and hybrid models. IFA Acquisitions believes firms that adapt and communicate their value will lead the future of financial advice.
The State of Advice Report 2025 by The Lang Cat marks a decade of analysis into why so many people in the UK still don’t access financial advice — and what that means for advice firms. Despite growing demand for financial guidance, only 9% of UK adults have paid for advice in the last two years, a figure unchanged since 2024.
At IFA Acquisitions, we recently unpacked this report in our latest video, exploring what it means for the future of the advice profession. Watch it here: The Advice Gap Report 2025 – IFA Acquisitions.
Understanding the Four (and Possibly Five) Advice Gaps
The Lang Cat categorises the advice gap into four main areas:
- Affordable Advice Gap – People willing to pay but not at current prices.
- Free Advice Gap – Those who need help but can’t afford it.
- Awareness & Referral Gap – People unaware advice exists or don’t know where to look.
- Preventative Advice Gap – Individuals who could avoid financial trouble with earlier intervention.
However, a fifth gap is emerging — the “accidental advice gap”. Under the FCA’s Consumer Duty, many firms are off-boarding smaller clients who no longer meet minimum investment thresholds, making it harder for these consumers to access regulated advice.
What Consumers Are Saying
According to the report:
- 31% find financial advice too expensive.
- 24% say they don’t trust advisers (rising to 27% among over-45s).
- 24% don’t know where to find one.
Yet, for those who do pay for advice, 91% say it helps them manage their money better — a powerful reminder that the challenge isn’t value, but perception.
The Adviser Perspective
Half of advice firms have stopped serving certain clients due to regulatory and commercial pressures. Many smaller IFAs report that up to 17% of their client base has been offboarded.
However, the report highlights innovative advisers like Jo and Nick — professionals developing subscription-based or hybrid advice models to make financial guidance more accessible.
Opportunities for Forward-Thinking Firms
The Lang Cat proposes three key steps to close the advice gap:
- Communicate value better – Use data and storytelling to show real client outcomes.
- Offer flexible service models – Embrace hybrid, digital, and guidance-led approaches.
- Push for regulatory clarity – Simplify the boundary between “guidance” and “advice.”
At IFA Acquisitions, we view this as a time of opportunity, not crisis. Firms that adapt, innovate, and clearly communicate their value will thrive in this evolving market.
Next Steps
Whether you’re planning to grow, evolve, or exit your business, IFA Acquisitions can help you find the right strategy and partnerships for long-term success.
FAQs
What is the “advice gap” in financial services?
The advice gap refers to the difference between people who receive paid financial advice and those who don’t. According to The Lang Cat’s State of Advice Report 2025, only 9% of UK adults have paid for advice in the last two years — meaning 91% remain without professional financial guidance.
How can advisers help close the advice gap?
Advisers can bridge the gap by clearly communicating their value, offering flexible or hybrid service models, and using technology to make advice more affordable and accessible. Education and trust-building are also key.
How does Consumer Duty impact the advice gap?
Consumer Duty has increased the regulatory burden on firms, leading some to stop serving smaller or lower-value clients. While this improves protection standards, it has unintentionally widened the advice gap for those unable to meet higher service costs.