Economic challenges leave advisers with concerned clients

Advisers say they are experiencing increasing demand for client support

Isabel Baxter
clock • 1 min read
Economic challenges leave advisers with concerned clients

Advisers are experiencing increasing demand for client support due to economic challenges, Fidelity International has found.

Fidelity Adviser Solutions' latest IFA DNA1 study has revealed almost half (49%) of advisers said clients are increasingly worried about their financial wellbeing with levels of concern now at their highest since the launch of the study in 2020.

More than four-fifths (87%) of advisers said that the cost of living and inflation are the main drivers for unease amid their client base, and doubts about market returns (74%) are also a significant factor.

Meanwhile, more than half (51%) of IFAs expect the number of people seeking financial advice to increase over the next five years. Many have already seen evidence of this growing demand. Just over nine out of ten (93%) of advisers have taken on new clients in the past 12 months compared with 91% a year ago and 84% in 2021.

The need for support in navigating more complex areas of personal finance (68%) is expected to be the main reason behind this demand for advice, along with increased awareness of the importance of financial planning (48%) and uncertainty of market conditions (42%).

Head of proposition, strategy and growth Sam Christopher said: "The need for financial planning has never been greater. 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.

"It is more important than ever for advisers to build strong and trusted relationships with clients. 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."

Read more: Knowing where to turn: Reassuring clients in turbulent times

More on Your profession

Advisers should 'wake up' to intergenerational wealth transfer

Advisers should 'wake up' to intergenerational wealth transfer

‘Advisers need to address the next generation as a new client segment’

Isabel Baxter
clock 02 May 2024 • 1 min read
AI adoption not a 'must' for advice industry but it can leverage services

AI adoption not a 'must' for advice industry but it can leverage services

‘You are not struggling for clients, so it is a great place to be.’

Isabel Baxter
clock 01 May 2024 • 1 min read
Long-term financial planning proving increasingly difficult

Long-term financial planning proving increasingly difficult

Cash ISAs were the preferred vehicle for those planning over the long-term

Sahar Nazir
clock 01 May 2024 • 1 min read

In-depth

Cognitive biases in advice and the psychology of insurance

Cognitive biases in advice and the psychology of insurance

A look into client decision making and its effects on protection uptake

Jaskeet Briah
clock 25 April 2024 • 5 min read
Editor's View: The consolidation news keeps on coming

Editor's View: The consolidation news keeps on coming

The editor's Friday Night Takeaway from 19 April

Hope Coumbe
clock 19 April 2024 • 1 min read
Editor's View: Is all this talk of bonds giving you whiplash?

Editor's View: Is all this talk of bonds giving you whiplash?

The editor's Friday Night Takeaway from 12 April

Hope Coumbe
clock 12 April 2024 • 1 min read