The dramatic shift to digitisation has been a blessing to allow the financial advice industry to continue during the pandemic and it may have also helped Brits take more interest in their finances.
Wealth manager Charles Stanley surveyed over 200 IFAs and found 52% have seen a “marked increase” in out-of-hours contact with clients as attitudes towards personal finances have shifted in the wake of covid-19.
Almost half (47%) also confirmed that clients required a significant level of detail on their investments and performance.
Some 68% of advisers said they have seen more engagement from younger audiences, and positively, a quarter (23%) of advisers said there has been greater appetite for ESG/sustainable investing from clients.
More than seven-in-10 (72%) predict their clients will be more active and engaging in their finances in the months ahead.
Long-term planning
The study also found that 2020 has been a pivotal year fundamentally altering the conversation, pushing estate planning and the transfer of wealth to the next generation higher up their clients’ priority list, according to over half (55%) of advisers.
Some 70% advisers said they’ve seen an increase in concern from clients over funding later life, while 63% have seen an increase in concerns around income generation, and early retirement (61%).
Other areas of concern include pension drawdown (64%) and will writing (57%)
Over a quarter (28%) said their clients have discussed delaying life events such as downsizing, while the same number (28%) stressed clients were under greater financial pressure.
Supporting family members financially has also been high on the agenda, with more than one-in-five (22%) advisers saying this has been a key topic for discussion, while the same number (22%) have debated possible delays in retirement due to financial uncertainty.
Surge in demand
John Porteous, group head of distribution, Charles Stanley said: “It’s been a difficult year for many, with financial plans and investments thrown off course by the market turbulence and the economic impacts of covid.
“It’s at times like this that financial advice really pays dividends, and our survey suggests this is translating into a surge in demand among advisers.
“During 2020, advisers have been quick to adapt to ‘the new normal’ pivoting high touch face to face business models to be able to serve a more diverse client set remotely.
“And while this has undoubtedly placed a lot of pressure on them, it’s also arguably left them better equipped for the new adviser conversation which is fast emerging.
“As we go into 2021, finding new ways to serve an engaged, intergenerational audience will be a priority to meet their differing attitudes and requirements.”
