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

FOS pushes ahead with CMCs complaint fee proposals

FOS pushes ahead with CMCs complaint fee proposals

Ombudsman writes to the Financial Conduct Authority

Isabel Baxter
clock 21 November 2024 • 2 min read
More than a third of advisers have not mentioned Consumer Duty to clients

More than a third of advisers have not mentioned Consumer Duty to clients

Only about a quarter of advisers have mentioned the regulation to clients

Sahar Nazir
clock 20 November 2024 • 2 min read
ISA reform 'under review' after absence in Budget and Mansion House

ISA reform 'under review' after absence in Budget and Mansion House

There are five different types of ISAs available on the market

Cristian Angeloni
clock 20 November 2024 • 3 min read

In-depth

Analysis: Advice M&A continues apace as FCA review looms

Analysis: Advice M&A continues apace as FCA review looms

Firms taking very different approaches to buying and selling

Isabel Baxter
clock 18 November 2024 • 7 min read
Your Autumn Budget briefing: Tax and pensions changes Labour could have in store

Your Autumn Budget briefing: Tax and pensions changes Labour could have in store

Budget comes as prime minister says country 'embrace the harsh light of fiscal reality'

Jen Frost
clock 29 October 2024 • 22 min read
In view: Plotting PFS change

In view: Plotting PFS change

From first operating loss since 2008 to sponsorship, board and revenue changes

Jen Frost
clock 17 October 2024 • 6 min read