Have you ever had financial advice? I have, in a few different formats.

It is important to realise that financial advice isn’t something that the ultra-wealthy get and not something we all have access to in one way or another.

I’ve had advice on our mortgage (and we were very happy with the deal). I will have to go back in a couple years to get it again when our deal is up.

I was given advice on life insurance and income protection. Although my life insurance experience was disappointing at the time (although the adviser was excellent) – I do now how an income protection policy, which I was advised into.

These were good experiences in terms of the advice I felt I received. Unfortunately, I have also had one bad experience.

When I was much younger and getting started with my career as a freelance journalist, I was advised (admittedly informally) to not bother getting a pension.

This was bad advice and has almost certainly set back my future retirement plans by about four years, as it delayed my first pension pot starting until I got a full-time role in the UK in 2016.

Crucially, I did not know this was bad advice at the time – because the adviser was the exert and I was a graduate with absolutely no financial knowledge to speak of.

Fortunately, I now know better.

More from Edmund Greaves

Why advice matters

The industry on the whole – from mortgages to life and general financial advice – has come on considerably since those days.

The sector does suffer from a major problem with the advice gap. This gap is essentially the gulf between what financial advisers are permitted to offer and the minimum level at which giving that advice becomes commercially viable.

The Government and regulator are fortunately looking at the issue, but it remains to be seen what kind of fix we get.

I have recently begun a regular series of interviews with financial planners for Mouthy Money’s partner site Octo Members. You can catch the first edition of that with Smart Financial’s Kate Morgan on Mouthy Money.

Since I began (and we are still very much at the start) the sense I’ve gotten from the diverse range of planners is that these people have their clients at heart.

Yes, the process costs money – but they seem unanimously dedicated to the best outcomes for people who need help with their financial lives.

Importantly, it is about more than just bunging savings into particular pots and deciding what to invest in – planners look at a whole range of issues from inheritance to tax liability, planning for later life care and the longevity of a retirement plan.

Crucially, we want to showcase how financial planners think about their jobs and the roles they have to play in people’s lives – in order to better demystify the process and how it might be useful to normal people.

This forms a key part of Mouthy Money’s mission – to help people grow, protect and enjoy wealth no matter where they come from in life.

We’re going to be sharing these conversations first on Octo Members, but also here on Mouthy Money in order to get a better insight into what makes financial planners tick and why what they do matters to ordinary people. Stay tuned!

Photo credits: Pexels

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Financial advice has a reputation for being largely inaccessible to young people. But do you even need it with a wealth of financial information available online? Mouthy Money investigates.

In an era of rising living costs, shifting job markets, and economic uncertainty, the question of whether young people – those under 45 – should seek financial advice is more relevant than ever.

For many in the UK, money management is a DIY business, with budgeting apps and online forums stepping in where traditional guidance once stood.

Yet, as financial decisions grow more complex and consequential, the case for getting professional financial advice does grow.

This feature explores what financial advice entails, when it’s worth seeking, its potential drawbacks, and the persistent “advice gap” that leaves many young Brits underserved.

What is financial advice?

Financial advice is a professional service aimed at helping individuals manage their long-term wealth more effectively.

Delivered by qualified, regulated financial advisers, it goes beyond generic tips or casual suggestions from friends.

Advisers assess your personal circumstances such as your income, debts, goals, and risk tolerance and provide tailored recommendations. These might include investment strategies, pension planning, mortgage options, or tax-efficient savings schemes such as ISAs.

In the UK, financial advisers must be regulated by the Financial Conduct Authority (FCA), ensuring they meet strict standards of competence and ethics. If you meet an adviser, they should be listed on the FCA’s register.

Advice can be ‘independent,’ covering the full market, or ‘restricted’, focusing on specific products or providers.

For young people, who may be navigating their first big financial milestones, this bespoke guidance can clarify a maze of options, whether that’s buying a home, starting a business, or planning for retirement decades away.

Mouthy Money spoke to a professional financial planner to get some insights into when a young person might need advice.

Katrania Lowers, a financial planner at Colmore Partners, explains: “Financial advice for young people is often misunderstood as something you only need ‘when you’re older’ or ‘when you’re rich’.

“But the reality is, the earlier you get clarity, the more control you have – especially at key moments like receiving an inheritance, coming into significant income, or starting a business.

“These are important points where the wrong move can be costly, and the right one can set you up for long-term security.”

Ask our experts your money questions

When should young people get financial advice?

For many under-45s, financial advice might seem like a luxury reserved for the wealthy or older generations.

Yet, certain life events and circumstances make it not just useful, but essential. Here are some key situations where seeking advice can pay off:

1. Inheritance

Receiving a lump sum, whether from a grandparent’s estate or a family windfall, can be overwhelming.

A 30-year-old inheriting £50,000 might wonder whether to invest it, pay off student loans, or save for a house deposit. But Lowers points out that mistakes are often made by young people who leave it too late to seek advice on inheritance.

Lowers explains: “People often think advice should come after the money lands. But in reality, the most powerful advice happens beforehand – when there’s time to understand the responsibilities that come with wealth, not just when it finally lands in their lap.

“Inheriting assets can be emotionally and financially complex, and without guidance, people risk making poor decisions or missing important planning steps – especially around tax, investing, or preserving family wealth.”

An adviser can map out tax implications (like inheritance tax thresholds) and suggest growth-oriented options, ensuring the money works harder over time.

Lowers adds: “Inheritance is seldom just about the money. It’s about stewardship. If someone doesn’t feel confident or equipped when they become a custodian of family assets, it can lead to stress, guilt, or worse – mismanagement.

“Getting advice early gives young people the language, tools and mindset to make thoughtful choices when the time comes; and having access to the wider family planner, who they already know and trust, means there’s already a sounding board in place when those imminent decisions need to be made.”

2. Business success

Young entrepreneurs are a growing force in the UK, with start-ups thriving in tech, creative industries, and beyond.

A 35-year-old who’s turned a side hustle into a £500,000-a-year business faces unique challenges: managing cash flow, structuring investments, or planning an exit strategy.

Financial advice can help balance personal wealth with business growth, while navigating tax reliefs such as Entrepreneurs’ Relief.

This can also be relevant for someone who isn’t necessarily an entrepreneur, but maybe joined a very successful business at an early stage and received some remuneration in the form of shares in the business.

3. Employment success

High earners – think City bankers, tech professionals, or NHS consultants in their early 40s – often juggle hefty salaries with big responsibilities.

A parent earning over £100,000 can face significant tax hurdles, especially given that marginal tax rates soar above this income level.

They might need advice on maximising pension contributions, mitigating income tax, or diversifying investments beyond a workplace scheme.

4. Other milestones

Life doesn’t wait for middle age. Buying a home, starting a family, or even planning a career break can benefit from expert input.

Financial advice doesn’t just cover investments and pensions. Mortgage advisers and insurance brokers are both services that young people can call on at key moments in their lives.

The former are one of the most popular routes when it comes to finding a mortgage for buying a home.

The latter can provide key help when someone is considering life insurance, income protection and other insurance options.

Lowers agrees with this sentiment: “Advice for young people doesn’t always have to be formal or product-led. Often, it’s about education or even just a safe space to ask ‘basic’ questions.

“For most young people, especially those still building their financial base, the right kind of advice might look more like a gentle steer – helping them understand pensions; why protection is important when they take out a mortgage, start a family or get a job; or how to use their money as a tool rather than something that disappears every month.”

In short, financial advice isn’t just for the grey-haired.

Whenever money gets complicated – or the stakes get high – young people stand to gain from a professional steer.

The drawbacks of financial advice

Despite its benefits, financial advice isn’t a silver bullet, and for many under-45s, it comes with major hurdles that make it less appealing.

Here’s why it might not always fit:

Cost: Advice doesn’t come cheap. Fees can range from £75 to £250 per hour, with comprehensive plans costing £500 to £2,000 upfront.

Ongoing advice might carry a percentage charge – typically 0.5% to 1% of your assets annually.

For a 32-year-old with £20,000 in savings, paying £200 a year might feel disproportionate, especially when free resources exist. However, doing it DIY does come with its own risks as you’ll be making decisions without personalised input from a professional.

Minimum net worth barriers: Many advisers target clients with significant wealth – say, £100,000 in investable assets – leaving younger people with modest portfolios out in the cold.

A 25-year-old with £5,000 in a Stocks and Shares ISA will struggle to find an adviser willing to take them on, as the fees wouldn’t justify the time spent.

This exclusivity can make advice feel elitist, rather than accessible.

Trust and complexity: Some young people hesitate because they don’t trust advisers (memories of mis-selling scandals such as PPI linger) or find the process intimidating.

Others worry about being pushed into products they don’t need, such as costly insurance policies.

And for the digitally savvy, the rise of robo-advisers – cheaper, algorithm-driven alternatives – can seem a more appealing fix than face-to-face meetings.

These drawbacks highlight a tension: while advice can be transformative, its structure often caters to older, wealthier clients, not the cash-strapped or early-career crowd.

The advice gap

This mismatch feeds into a broader issue known as the “advice gap”. This is the divide between those who need financial guidance and those who can access it.

For young people, the gap is stark. A 2023 FCA survey found only 8% of UK adults under 45 had sought regulated financial advice in the past year, compared to 20% of over-55s. Cost, awareness, and a lack of tailored services were cited as key barriers.

The implications are serious. Without advice, young people risk under-saving for retirement (exacerbating the UK’s pension crisis), mismanaging windfalls, or missing out on tax breaks.

Lowers says the real challenge is access: “Many don’t know where to go or assume they can’t afford it – which feeds into the advice gap. If we want to change that, we need to make financial advice or guidance more accessible, more flexible, and more in tune with the reality of someone navigating first-time milestones, not just six-figure portfolios.

“Financial coaching is becoming more and more popular, and I can see why. It offers guidance in which AUM doesn’t matter and the ability to meet minimum initial or ongoing fees isn’t even a consideration – it appeals to the wider population, including younger people. Whilst it isn’t advice, I do believe this will start to bridge some sort of gap.”

The rise of ‘finfluencers’ on TikTok and Instagram – some offering dubious tips – further muddies the waters, filling the void with unregulated noise.

So, what’s being done? The UK Government and regulators are stepping up. The FCA’s 2022 Consumer Duty rules push advisers to prioritise clients’ needs, making services more transparent and outcome focused.

Meanwhile, the Money and Pensions Service (MaPS), a Government-backed body, offers free guidance through Moneyhelper, targeting younger audiences with tools such as pension calculators and debt advice.

Innovations such as ‘simplified advice’ are also growing. In 2024, the FCA proposed lighter-touch models – think low-cost, digital-first advice for basic needs such as ISAs or small investments.

Firms including Wealthify and Nutmeg already offer ‘robo-advice’ at a fraction of traditional upfront fees.

Yet, progress is slow. Closing the gap requires more advisers but the UK has just 28,000, down 10% since 2015.

Better financial education in schools, and a cultural shift to see advice as a young person’s tool, not a retiree’s privilege.

To seek or not to seek?

For young people under 45, financial advice isn’t a one-size-fits-all solution. If you’re navigating a windfall, scaling a business, or earning big, it can be a game-changer, offering clarity and long-term security.

But for those with tighter budgets or simpler needs, the costs and barriers might outweigh the perks – especially when digital tools and free resources abound.

The advice gap remains a sticking point, and while regulators and the Government are chipping away at it, young Brits must weigh their options carefully.

Ultimately, the decision hinges on your circumstances, goals, and willingness to invest in your financial future. In a world of uncertainty, a little expert help might just be the edge you need – or a cost you can skip until the stakes rise higher.

Photo credits: Pexels

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Must know money focuses on the financial news you need to know. Here’s what scrapping inheritance tax (IHT) would mean for the richest people in Britain.

The wealthiest estates in Britain stand to gain around £1 million in tax savings if the Government abolishes inheritance tax, a new report from the Institute for Fiscal Studies has found.

The report comes on the back of the news over the weekend that Prime Minister Rishi Sunak is considering abolishing inheritance tax ahead of the next general election, due in December 2024 at the lastest.

However one of the report’s author David Sturrock points out that one in eight people in the UK will end up liable to pay the so-called ‘death duty’ when they or their partner dies by the tax year 2032-33.

Inheritance tax earns £7 billion for the UK Treasury each year currently and this is set to rise to £15 billion by 2032-33. Less than 4% of estates pay the duty.

Why abolish inheritance tax?

Inheritance tax is designed to take cut from people’s wealth when they die. At the moment through various bands and exemptions, for a married couple there is unlikely to be any tax obligation on wealth under £1 million, assuming their own home is factored into that wealth.

Inheritance tax is seen as ‘progressive’ politically as mainly affects the wealthier in society. But this has led to a major financial advice industry dedicated to avoiding paying.

People use advisers to ‘mitigate’ their liabilities and tweak the structure of their wealth to minimise how big the tax bill ultimately is.

Despite this, inheritance tax is widely considered the ‘most hated tax’ in Britain. the public routinely poll unfavourably toward the tax, no matter the understanding of who it impacts.

One of the biggest criticisms of the tax, aside from the cost, is that it targets families when they are grieving the loss of a loved one.

Another major gripe is the perceived unfairness of taxing hard-earned wealth that has already been subject to a myriad of other taxes such as income, dividend, capital gains, or stamp duty, over the holder’s lifetime.

Photo by Ron Lach

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Mouthy Money Your Questions Answered panelist Sarah Coles answers a reader’s question about what they can do if they can’t afford to pay their tax bill. 

Question: I lost my job at the end of last year and now don’t have enough money to pay off my tax bill at the end of January. What can I do? 

Answer: If you’ve been putting off doing your self-assessment tax return because you can’t afford to pay your bill, the best approach is to consider it as two entirely separate things.

First, you need to do the paperwork, or you’ll face a penalty for missing the deadline of 31 January, and even if you can’t afford to cover your bill in time, there’s no need to fork out for admin delays.

If you can’t pay on time, and you don’t do anything about it, you’ll also pay a penalty – which will rise as time goes on. Don’t be tempted to ignore it, because it won’t go away, and the consequences will get worse.

If you’re not engaging with the taxman at all, they have the power to take some pretty drastic steps. They can pass the debt to a debt collection agency, take money direct from wages or benefits, take you to court, and even make you bankrupt.

If you live in England, Wales or Northern Ireland they can take money directly from your bank and take your belongings and sell them – which can add substantial costs to your debt.

However, if you do the tax return on time, and set up a payment plan, although you’ll pay interest on outstanding tax, there won’t be any more penalties or other horrible consequences.

These payment plans are officially called ‘time to pay arrangements’ and allow you pay in instalments.

You may be able to set one up simply online (on the HMRC website) as long as you owe less than £30,000, are within 60 days of the payment deadline, aim to pay the debt over the next 12 months, and don’t have any other payment plans or debts with HMRC. 

To do this, you’ll need your bank account details and your unique tax reference number (sometimes called a UTR). You will have been given this when you first registered as self-employed, and it will be on previous returns. You can also find it on your online HMRC account.

If you fall foul of any of these restrictions, it’s more complicated, but don’t let this put you off, because there’s still a very good chance you can sort something out.

You’ll need to call the self-assessment payment helpline on 0300 200 3822. They’ll take you through a more in-depth process, so you’ll need to prepare for the call.

They’ll start by checking you can’t pay in full, and they’ll ask if you can make a payment towards the total debt.

You’ll also need to give details about any other savings or investments, (excluding pensions) and will expect you to use this to cut your debt as much as possible. Then they’ll work out what you can afford each month.

You’ll be asked details about what you earn (including any income from pensions), how much you usually spend, and whether there are other taxes you need to pay.

The amount they’ll expect you to hand over is usually around half of what you have left over after you’ve covered all other outgoings including rent or mortgage payments, food, utility bills and any fixed outgoings.

The repayment schedule will be based on what you owe and what you can afford to repay – there’s no time limit on how long it can run for.  

Once the play is set up, you will be able to talk to HMRC and if you’re not happy with the repayment schedule, you can ask them to tweak it.

You can pay also make overpayments if you are able to and this will clear the debt faster.

The full process can be stressful, so it can help enormously to contact a debt charity like Stepchange or Citizens Advice. They should be able to help you understand your overall financial position, and deal with any other debts.

They can also go through the process of working out what debt repayments you can cover, which puts you in a better position when you contact HMRC. They’ll help you produce a ‘standard financial statement’, which the taxman will accept as proof of what you can afford.

However, don’t assume it’s definitely going to be a nightmare. In most cases if you follow all the steps you can set a repayment plan up quickly online, or with a slightly longer phone call to the tax office.

HMRC is aware of the cost-of-living crisis and how people are struggling and ultimately they want the tax to be paid, so there’s no point in putting it off or delaying getting it sorted.

Sarah is an analyst at Hargreaves Lansdown

Sarah has been an analyst with Hargreaves Lansdown for the past five years, after spending 14 years as a financial journalist writing for publications ranging from Bloomberg to AOL Money. Her areas of expertise include savings and financial planning – covering everything from tax to borrowing, spending and the housing market. She is also co-presenter of HL's ‘Switch Your Money On' podcast.

She is passionate about encouraging people to get to grips with every aspect of their finances, not because finance is inherently fascinating to everyone, but so they have enough money for the things that really matter to them in life.

Photo by rupixen.com on Unsplash

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With bills soaring, there has arguably never been a better time to get on top of your finances.

The internet has some great money tips and advice to keep more of your hard-earned cash in your pocket but finding it can be like searching for a needle in a haystack at times.

That’s why we have decided to do that for you. Here are some great money stories that we hope will inspire you and, most importantly, save you or make you money.

How to save money on childcare

It is a rising issue which millions of parents have to deal with every day – how do you have kids and maintain a two-income family? Childcare costs have become so outrageous, calls are growing for the Government to reform the sector to allow bigger minder to child ratios.

But until that reform happens (if it ever does) parents need to find ways to cut the cost of childcare now. Harriet Myer writes for The Guardian on the subject and she’s got some great ideas.

Parents can make use of free childcare hours already available, there is tax-free money available too, and those on Universal Credit can get extra help. Plus, local community support could prove invaluable at the moment.

Cheap or free holiday activities are another good money saver to occupy kids’ time, plus nanny sharing is a growing trend allowing multiple families to split the cost. Finally, turning to family – particularly grandparents – is a go to for many who have the option available to them.

Unpopular mortgages that save you £250

Mortgage rates have been big in the news recently after the disastrous Mini Budget which sent rates soaring, making costs for homebuyers significantly more painful.

But what if you could save £250 a month on a mortgage instead? Rachel Mortimer, writing in The Telegraph, looks at just that.

Tracker mortgages, she says, have seen a big influx in buyers as borrowers look to bet on the possibility that rates could in fact come down. Tracker mortgages work differently to typical fixed-rate deals in that their interest rises and falls as the Bank of England base rate moves.

While the rate is going up at the moment, there’s a possibility that it could be coming back down by next year if the country goes into recession, which could make these “unpopular” deals a lot better value than being stuck on a high fixed rate.

Who do you go to for money advice?

That’s the question posed in a piece in The Times by Tom Howard, who looks at research from accounting firm Deloitte. The survey suggests money expert Martin Lewis is more trusted than banks for money advice by the public.

Just under half (47%) say they’d go to the Money Saving Expert guru, matched by those who ask for help from friends or family. This compares to just 41% who’d consider using information and resources from their bank for help with their money.

The research curiously finds that despite this reluctance, nearly nine in 10 who did seek help from their bank found that help useful. Of course, you could just sign up to the Mouthy Money newsletter, which is packed full of weekly money stories to help your personal finance journey too! Sign up on the box in the middle of this page.

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