"While markets may have recovered much of their losses from the start of the year, the outlook remains far from certain, and now is the time for IFAs to help clients reassess their situation and prepare for the future."
29% say demand will be driven by clients’ changing circumstances and goals and a further 20% believe there will be a greater awareness of the value of financial planning. This is reflected by an increase in the number of firms looking to take on new clients, rising from 67% when questioned at the start of the year, to more than three-quarters (77%) when surveyed again following the outbreak of the pandemic.
79% of advisers say they have already addressed clients’ concerns about volatility following the significant market falls experienced earlier this year.
More than five years after the introduction of pension freedoms, advisers also expect preparing for retirement to act as a prompt for many clients (16%) to seek advice. Figures from the Office of National Statistics suggest more than 940,000 people will face major decisions about how they plan for retirement when reaching the age of 55 this year.
Jackie Boylan, head of FundsNetwork, commented: “Many of us will have found our plans and priorities for the future significantly disrupted by the events of this year. While our long-term financial goals may not have changed, the way we go about achieving them may have to.
“As we know, financial advisers can play a valuable role in supporting clients during this unsettling time, demonstrating the value of advice and financial planning. While markets may have recovered much of their losses from the start of the year, the outlook remains far from certain, and now is the time for IFAs to help clients reassess their situation and prepare for the future.
“The introduction of pension freedoms in 2015 revolutionised the way in which people think about retirement, with the ability to access a lifetime’s worth of savings from the age of 55. While many have embraced the choices available to them, the range of options to decide between can be just as overwhelming - and more and more people are likely to need help in understanding some of the complexities these present.
“As demand for advice grows, so it must become more attainable - and this is where technology is the enabler. Technology cannot replace the need for human interaction, however we’re likely to see further investment in the development of hybrid advice offers, which will become the ‘norm’ over the coming years. These solutions can serve clients’ core financial planning needs, creating more time for advisers to build and strengthen relationships with them.”
