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Advised clients are more concerned about their financial wellbeing now than they were during the Covid pandemic in 2021, a new study has revealed.
Overall, 60% of advisers who responded to Fidelity Adviser Solutions’ latest IFA DNA survey said more clients are anxious about their finances. This is the highest number since the survey started in 2019.
In 2021, during the height of the pandemic, 35% of advisers said their clients were concerned about their financial wellbeing.
The primary drivers of this anxiety were inflation and the ongoing cost-of-living crisis, according to 83% of advisers.
Political uncertainty (58%), concerns about market returns (46%) and generalised anxiety about future events (30%) were also listed as reasons.
The study also highlighted the value of advice in helping people address these challenges.
The top reasons advisers gave for wanting to help clients is to establish clear financial and life goals.
Helping clients navigate into and through retirement and translating the complex into something simple that they can understand came second and third, respectively.
Peace of mind took fourth place.
Fidelity Adviser Solutions head of distribution Paul Richards said: “As financial pressures mount, it’s unsurprising that more clients are anxious about their financial future.
“Inflation, rising living costs and political uncertainty are creating a perfect storm of anxiety, and our research suggests advisers are fielding increasing concerns from clients about their financial wellbeing.
“The role of the financial adviser continues to evolve beyond traditional wealth management into more of a coaching and advisory relationship, providing support for clients who may feel overwhelmed by complex financial landscapes and uncertain economic futures.
“The role of the adviser has never been more critical, as clients seek clarity and reassurance during these periods of uncertainty.”
The research was commissioned through NextWealth, and findings were based on a representative sample of financial advisers from research conducted in July 2024.
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