A key role for advisers through the cost of living crisis has been providing emotional support, says Royal London.
According to a survey by the pensions and investment group, 66% of advisers state their main role through the crisis has been to provide reassurance and peace of mind for clients.
Rising costs mean UK households need an extra £441 a month on average compared to this time last year, while a double whammy of 40-year high inflation and high interest rates means households continue to face a difficult year ahead.
However, people seeking advice have been shown to feel more confident about their ability to cope, says Royal London. Nearly half of (46%) of consumers say they’re extremely or very worried about costs, compared to just 21% of advised clients.
Clare Moffat, pensions expert at Royal London, said: “Rising costs are having a dramatic impact on people and their emotional health and it’s at times like this with so much economic uncertainty that an adviser’s range of skills comes to the fore.
“Having a financial adviser to actively manage a client’s wealth brings many benefits, other than just the expected financial benefits. It’s the softer skills that advisers deliver alongside advice, like reassurance and peace of mind, that bring the value of financial advice to life for clients, helping them to feel better about themselves and their finances, especially in times of crisis.”
