Financial advice delivers many benefits, but in a time of challenging economic conditions it’s the emotional support that clients value the most, according to two thirds of advisers.
Royal London’s research on the impact of the cost of living crisis, carried out with over 200 financial advisers, identifies peace of mind and reassurance as the main benefits of professional advice, helping clients to feel more confident about money.
Rising costs mean UK households are having to find an extra £441 a month on average compared to this time last year, causing real concern. But the findings show much less concern from those who can turn to a financial adviser. Nearly half (46%) of consumers say they’re extremely or very worried about costs, compared to just 21% of advised clients, according to financial advisers.
A double whammy of inflation at 40-year highs, remaining stubbornly in double digits, and a steady climb in interest rates means UK households continue to face a difficult year ahead. It’s not a surprise that advisers say inflation and market volatility are causing clients the most concern, followed by the impact of interest rates on mortgage payments.
Clare Moffat, pensions expert at Royal London, said: “Rising costs are having a dramatic impact on people and their emotional health and it’s at times like this with so much economic uncertainty that an adviser’s range of skills comes to the fore.
“Having a financial adviser to actively manage a client’s wealth brings many benefits, other than just the expected financial benefits. It’s the softer skills that advisers deliver alongside advice, like reassurance and peace of mind, that bring the value of financial advice to life for clients, helping them to feel better about themselves and their finances, especially in times of crisis.”
