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Coronavirus crisis boosts demand for advice

22 September 2020

The financial impact of the Covid-19 pandemic has led to greater demand for financial advice, new research from Openwork has revealed.

Nearly one in five (17%) adults say they are now more likely to seek financial advice in the wake of the crisis, with this figure rising to nearly one in four (23%) among under-35s. Around a third (29%) of those polled said the pandemic has knocked their financial planning off course.

Overall, general demand for advice remains buoyant, according to Openwork, with 44% of adults acknowledging that they would benefit from some form of financial advice and 55% of 18-24 year olds valuing financial advice.

Despite lockdown and social distancing measures, face-to-face advice was still found to be preferable, with 63% of adults wanting support in person and 66% concerned that robo-advice may not meet their needs.

Claire Limon, director of learning and acquisition, Openwork, says: “Despite the challenges posed by COVID-19 and the difficult last six months, it is absolutely clear that the demand for financial advice remains as strong as ever, especially among young adults who have only recently started their careers.

“To some extent it will be about repairing the financial damage of COVID-19, but it is also interesting that people still want to see advisers face-to-face despite social distancing.”

The views expressed by consumers echoed those of advisers, the research found, with over half (52%) of advisers believing that Covid-19 has demonstrated the true value of advice and 35% agreeing that recent events will lead to greater demand.

Nearly half (47%) of advisers think that firms may need to recruit more advisers to meet the growing need for advice.

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