Economic uncertainty is fuelling a rise in the number of advised clients accessing their investments and savings, says Royal London.
Nearly a third (34%) of advisers said they have seen an increase in the level of drawdown withdrawals compared to two years ago, while 33% have seen a rise in the number of clients pulling money out from pensions or investments to help family members.
At the same time, 41% of advisers are having more conversations with clients about investments and the economic environment compared to late 2021.
In addition, more than a third (37%) of advisers said the climate of rising interest rates, coupled with volatile market conditions over the last two years, has led to more clients moving money to cash. However, a similar number (36%) also reported a reduction in the number of clients cancelling protection policies.
Clare Moffat, pensions expert at Royal London, said: “The last few years have been challenging for many, no matter where you may be on the ‘wealth ladder’. Unsurprisingly, the economic instability and higher inflation coupled with the increase in interest rates has seen a significant move to cash.
“It’s also interesting to see the increase in the number of people using their savings to help family members, demonstrating the financial instability across generations. This confirms a trend we saw in adviser research we conducted earlier this year which found a quarter of requests are from clients who want to release money for their adult children.”
