Nearly half of advised clients are seeking comprehensive reviews of their finances in the wake of the Covid-19 pandemic, The Openwork Partnership has found.
In a study by the group, advisers estimate that on average, around 46% of their clients are engaged in a comprehensive review of their financial situation in the wake of the pandemic. For nearly a third of advisers (30%), that figure rises to 75% or more of their clients.
The findings also revealed the impact of the pandemic on clients’ finances, with around 15% of advised clients suffering financial losses during the crisis. Around one in 10 advisers estimate that 30% or more of their clients have been hit financially.
Nearly half (46%) of advisers said clients have stopped investing or saving as a result of the pandemic, while 44% have seen clients take tax-free lump sums earlier than planned and 40% report that clients have taken money out of their pension funds.
Meanwhile, around two fifths (37%) of advisers say clients have been running down savings and reducing their drawdown income and 26% have cashed in investments.
Mike Morrow, chief commercial officer at The Openwork Partnership, said: “The pandemic has undoubtedly had an impact on people’s finances with winners as well as losers.
“With so many changes, it is good to see that more people have been seeking professional advice to ensure their money works hard for them. What might seem like a good idea right now could have negative consequences for you later in life. It’s best to get help from a financial adviser and ensure you have all the details necessary to make an informed decision.”
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