- More than half (55%) of IFAs expect demand for financial advice to accelerate within the next five years, with many predicting a renewed focus on financial planning following the uncertainty resulting from Covid-19
- However, a third (35%) have reported a decline in their clients’ financial wellbeing during the past year
London, 12 July 2021: Advisers are predicting a renewed focus upon the importance of financial planning to drive growth within the advice market over coming years, according to research from FundsNetwork, Fidelity International’s adviser platform.
The findings are revealed in FundsNetwork’s second ‘ IFA DNA’ report, with more than half (55%) of advisers expecting the number of people seeking financial advice to increase within the next five years*. More than two-thirds (68%) anticipate a growing awareness of financial planning to drive this demand, with market uncertainty (58%) and shifting personal circumstances (58%) also playing a part.
Continued trends, including demographic shifts (33%) and improvements in technology (16%), are also expected to contribute towards market growth in the near future.
Jackie Boylan, Head of FundsNetwork at Fidelity International commented: “The events of the past 18-months will have led many people to reassess their financial priorities. While this may have led to more positive reflections for some - looking at how they can create opportunities for the future - others may be looking for greater security after such uncertainty. In either case this can present complex decisions which financial advice can help to navigate.”
Not surprisingly, the findings reveal many advisers are concerned about the impact of the pandemic upon their clients’ financial wellbeing. More than a third (35%) of IFAs have seen an increase in the number of their clients experiencing money worries over the past year - with three-quarters (75%) of these reporting a decline in their clients’ overall wellbeing and mental health as a direct result.
While most advisers (83%) feel comfortable supporting clients with their financial wellbeing, 13% feel less certain and would like greater support in meeting their needs. Technology (44%) and training (29%) are seen as key in helping to provide solutions.
Jackie Boylan continued: “Financial wellbeing plays such an important part in determining how we feel about other areas of our lives, in both our sense of security as well as our ability to pursue life goals. The financial challenges many households have faced during the past year will undoubtedly have added to the uncertainty resulting from the pandemic and placed further strain upon their overall wellbeing. Advisers can provide invaluable support as they look to overcome both short and longer-term concerns.”
To find out more please visit: IFA DNA: Practitioner insights for advisory businesses | FundsNetwork (fidelity.co.uk)
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