Clients are increasingly turning to their adviser for support in the face of economic challenges, with many concerned about its impact upon their financial wellbeing, says Fidelity Adviser Solutions.
Almost half (49%) of advisers say clients are growing more worried about their financial wellbeing, with levels of concern now at their highest level since the launch of Fidelity Adviser Solutions’ IFA DNA study in 2020. Nearly nine in 10 (87%) advisers say the cost of living crisis and inflation are the main drivers or their clients’ unease, while doubt about market returns (74%) are also a significant factor.
Over half (51%) of advisers expect the number of people seeking financial advice to increase over the next five years, with 93% of advisers stating they have taken on new clients in the past 12 months, compared to 91% a year ago and 84% in 2021.
Advisers believe support with navigating more complex areas of personal finance (68%) will be the leading reason behind a jump in demand for advice, along with increased awareness of the importance of financial planning (48%) and uncertainty of market conditions (42%).
Sam Christopher, head of proposition, strategy and growth at Fidelity Adviser Solutions, said: “The current economic backdrop means demand for advice is significant, with households seeking support to manage competing obligations while achieving their long-term goals.
“In a challenging environment where clients are adjusting to higher interest rates and a cost-of-living crisis, an increasing number of advisers are reporting that clients are more concerned about their financial situation. And with concerns rising for the second year in a row – with more advisers noting increased concern among their clients about their financial wellbeing than during the pandemic – advisers have a vital role to play by helping clients navigate these challenging times.”
Christopher said it is “more important” than ever for advisers to focus on building strong and trusted relationships with clients.
He added: “As these findings show, more and more people are recognising the value of financial advice and as an industry we need to look at how we fulfil this.”
