Demand for advice is growing as clients are concerned about their financial wellbeing, a new study has found.
Almost half of advisers in Fidelity’s IFA DNA study said clients are “increasingly worried about their financial wellbeing” with levels of concern hitting the highest level since the study was launched in 2020.
Of those asked, 87 per cent of advisers said the cost of living and inflation are the main drivers of unease for clients, with doubts about market returns also a significant factor at 74 per cent.
In 2021, 35 per cent of advisers said clients were more concerned than usual about their financial wellbeing. This figure has jumped to 49 per cent in 2023.
Many advisers told the study they have seen growing demand with 93 per cent taking on new clients in the past 12 months, compared with 84 per cent in 2021 and 91 per cent in 2022.
More than half of those surveyed expect the number of people seeking advice to rise in the next five years.
Sam Christopher, head of proposition, strategy and growth for Fidelity Adviser Solutions, said the current economic climate has seen households looking for support to manage "competing obligations" and still achieve long term goals.
She said: "In a challenging environment where clients are adjusting to higher interest rates and a cost of living crisis, an increasing number of advisers are reporting that clients are more concerned about their financial situation.
"And 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 time
"The need for financial planning has never been greater. We’re continually looking at the solutions we can provide to support advisers, as they help clients to respond to changes in their financial circumstances.
"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."
tara.o'connor@ft.com
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