Covid has increased value of financial advice
22 October 2020
The value of financial advice among clients increased during the Covid-19 pandemic, according to new research by Seneca Investment Managers.
Over four-fifths (82%) of advisers surveyed found themselves speaking to their clients more so, or no less than before the pandemic, with just 18% spending less time with their clients. Almost three fifths (59%) of advisers expect to see an increase in their services post-pandemic.
Steve Hunter, head of business development, Seneca Investment Managers, said: “The rhetoric around the decline of advisers pre-Covid-19 couldn’t have been more misdirected. On the contrary, the value of good financial advice appears to have increased significantly.
“Quality sound advice at a juncture like this, both socially and economically, cannot come fast enough and savers and retirees alike appear well engaged with their advisers. This bodes well for what may well be a challenging few months, or even years ahead for the financial markets.”
Seneca IM said volatility in the markets had prompted clients to reassess their risk exposure. Just over a fifth of advisers (22%) saw clients affect their retirement plans by reducing their risk exposure and reassessing their income withdrawal requirements (22%). However, a number of advisers (19%) said clients had increased their risk exposure, while just a tenth (10%) saw their clients make no changes.
The survey also found that the biggest challenge for advisers, both before the pandemic and going forward, was managing client expectations (46%), with a quarter facing the challenge of maintaining the same level of natural income. Altering asset allocation/ rebalancing was also cited as a challenge.
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