A growing number of clients are withdrawing funds amid the cost of living crisis, new research from Standard Life has revealed.
According to the group, nearly half (46%) of advisers said clients had withdrawn funds to cover essential bills and plug shortfalls.
Over a third (35%) of advisers have also seen clients deviate from previously set plans by withdrawing money.
The findings also revealed a shift in attitude towards a more cautious approach. More than a third (36%) of advisers said clients have taken out money to establish “rainy day funds” amid the ongoing cost of living crisis. The economic uncertainty has also prompted clients to take a more risk-averse approach, with 29% of advisers reporting that their clients are shifting their investments towards lower-risk options.
Chris Hudson, retail advised managing director at Standard Life, said the economic backdrop is having a “stark impact” on people’s financial plans.
“There’s a lot to contend with, from sky high mortgages, rising interest in debts and ever changing tax rules and it’s important to factor all of this into financial planning.
“In this increasingly complex environment, advisers have a crucial role to play in navigating their clients through it all and helping them withstand the turbulence as best possible. This will give peace of mind to clients as well as hopefully help them weather the financial storm.”
Matt ward, communications director at AKG, added: “We simply cannot get away from the conversation about the seismic impact of the past few years on UK consumers, nor should we. What has been experienced needs to be acknowledged and understood by the financial services industry so that a positive future can be built upon from here.”
