"There is a real demand for advice from cash savers who believe that interest rates are unlikely to rise soon and are prepared to take more risk to get better returns."
Nearly two out of three (64%) of advisers have reported a rise in inquiries from clients about switching cash savings into low-risk alternatives.
The Bank of England’s decision in July to cut interest rates to 0.25% sparked increasing interest, with just two out of five advisers (38%) expecting any rise in the base rate this year.
60% of advisers rate smoothed multi-asset solutions as the most appropriate alternative for savers who are prepared to take more risk with their savings and do not need instant access to their cash.
The launch of new NS&I products outlined in the Autumn Statement has also attracted support – 38% say they regard NS&I products as the most appropriate alternative for cash savers.
Conversely, just 6% of advisers say fixed-rate savings bonds are the most appropriate alternative for cash savers while only 2% would say cash ISAs are a good alternative.
Paul Fidell, investment expert at Prudential, said: “The base rate has been at an historic low since March 2009 and the post EU Referendum rate cut simply added to the pressure on cash savers.
“There is a real demand for advice from cash savers who believe that interest rates are unlikely to rise soon and are prepared to take more risk to get better returns. They value the support from advisers when finding a home for their money that can potentially generate better returns than cash.
“Smoothed multi-asset products had a strong year in 2016 and look likely to continue to prove popular this year given the continuing investment market volatility and low interest rate environment.”
