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."
