Anyone under the impression that you can get top financial advice from so-called “fin-fluencers” might want to think again, with a new analysis shows nearly 9 in 10 TikTok posts offering such guidance could not only be misleading but could also damage future finances.
The research, from pension advisors Almond Financial, has found that creators producing advice-led content on TikTok rarely encourage viewers to do their own financial research and some give advice under the guise of selling online courses, e-books, or memberships to exclusive investment advice.
Some of the advice given by creators can even lead to long-lasting financial damage, especially when it comes to people opting out of a workplace pension scheme, or adhering to tax advice that is not fit for their individual circumstances.
Experts at Almond Financial studied over 150 TikTok videos across a range of topic areas such as tax advice, pension tips and retirement planning to uncover the scale of the influencer problem. The creators behind the videos studied have a combined view count of 78,587,134 views, and the accounts studied had over 28 million followers when combined.
The study found that the majority of financial advice videos on the platform are given by unaccredited content creators, with 85.5% of videos not containing any of the risk warnings that have become a standard safeguard for the financial industry.
Worse still, 12.5% of content creators are giving advice with the sole aim of selling an online course or e-book – which has become a growing revenue driver for many creators on social media.
Doing your own research into financial products is really important, yet 91.45% of creators don’t encourage viewers to do their own due diligence before making important financial decisions.
Almond Financial principal financial adviser Sam Robinson said: “The findings in this research are alarming and really showcase the need to be vigilant about where you get your information from when making important financial decisions.
“One shocking finding in the research was the number of creators spreading bad advice about opting out of your workplace pension at a young age. It should be noted that any contributions missed now would likely need to be made back at some point in the future to bring your pension pot back up to where it should be, and you’ll have been missing out on employer contributions and investment growth and being less tax efficient too.
“TikTok is also home to lots of creators who make a living off of selling online courses, e-books and more. We found that a lot of these accounts give especially poor financial advice, as their primary motivation for creating content isn’t to give sound advice to viewers, but to sell a product that personally enriches them.
“There is a lot of complexity and nuance that comes with sensible financial planning, and life-changing decisions shouldn’t be made off the back of a TikTok video, especially without further research. For anyone unsure of their financial future or want to have an effective plan for their retirement, it’s worth speaking to a qualified financial advisor – not someone they came across on TikTok.”
The study follows City watchdog the Financial Conduct Authority charging a number of influencers – who have a total of 4.5 million followers on Instagram – over allegations they were paid to promote a dodgy investment scheme.
Those accused include The Only Way is Essex star Lauren Goodger, Love Island contestants Biggs Chris, Jamie Clayton, Rebecca Gormley and Eva Zapico, Towie’s Yazmin Oukhellou, and Geordie Shore’s Scott Timlin.
Back in 2022, the Advertising Standards Authority warned brands which jump into bed with “high-risk” influencers they faced legal action in a crackdown on serial offenders who failed to disclose when a post is an advertisement. And, in February 2023, the FCA warned it would come down hard on so-called “fin-fluencers” if it considered posts were misleading. However, this is the first prosecution brought by the regulator over alleged financial promotion breaches.
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