Close to six in ten (58%) of IFAs expect the number of people seeking financial advice to increase over the next five years, according to a new report.
The number expecting demand to grow in 2021 and 2020 was 55%.
New client numbers swelled over the past year, according to Fidelity Adviser Solutions’ latest IFA DNA report. Nine in ten (91%) advisers had taken on new clients in the past year, in comparison to 84% a year ago.
Around one in five (16%) of advisers had taken on more new clients than usual over the past year, in comparison to 8% the previous year.
One in five (20%) of financial advisers surveyed had taken on fewer new clients than usual over the past year, in comparison to 43% in 2021.
One area where advisers had seen an increase in demand was intergenerational wealth transfer. Over half (55%) had seen an increase in demand for intergenerational wealth transfer advice, up from 36% last year, with 13% referring to the increase as significant.
The main driver for the expected increase in demand for advice was the need for support in navigating more complex areas of personal finance (23%), followed by growing awareness of the importance of Financial Planning (22%), and shifting personal circumstances (12%).
Of those who expected to attract new clients in the next 12 months, 62% expected the new clients to come via referrals from existing clients and contacts.
Around half (46%) of the IFAs surveyed said their clients are more worried than usual about their financial wellbeing, up from 35% a year ago.
Clients were concerned about the rising cost of living (39%), possibility of market decline (36%), geopolitical uncertainty (33%) and about their preparedness for retirement (34%).
Jackie Boylan, head of Fidelity Adviser Solutions, said: “The past few years have been characterised by change and uncertainty, prompting many of us to pause and reflect – considering both the challenges and opportunities these changes present. However, it’s clear the toughening economic climate is taking its toll, with advisers reporting more clients concerned about their financial situation now than during the pandemic.
“Many clients will be worried about the combined impact of market volatility and the rising cost of living upon their financial goals. Having a clear awareness of their income, outgoings and long-term savings is now more important than ever. Advisers have a vital role to play by helping them to consider different options and how to adjust their plans in the event their circumstances change.”
NextWealth surveyed 204 UK financial advisers on behalf of Fidelity Adviser Solutions in May 2022.
