Almost three quarters (72%) of financial advisers say their clients’ priorities have changed since the start of the year, according to new research from Opinium which gives a snapshot into current client attitudes and behaviours.
Among those IFAs whose clients have changed their financial focus, 73% say their clients are taking more caution in their decisions, while 66% are also reviewing their finances more. In addition, 37% are investing less money at the moment and 29% are saving more. At the same time, a fifth (19%) of IFAs say their clients are investing more and 23% say they are saving less.
Understandably, half (49%) of IFAs say the war in Ukraine is their clients’ biggest concern for the next tax year. Three in ten (28%) say their clients are most concerned about the rising cost of living, and for 13% inflation is the main worry.
Indeed, following the recent Spring Statement announcements, two-thirds (65%) of the public overall think the government should be doing more to tackle the cost of living situation, with just 22% thinking they are doing all they reasonably can.
Alexa Nightingale, Head of Financial Services research at Opinium commented: “Given the current geo-political turbulence and the rising cost of living, it’s no surprise that people are reviewing their finances and reassessing their priorities, and especially given only 27% think last week’s Spring Statement measures will have a positive effect on their personal finances. Clearly financial advisers will need to stay in close contact with clients and help them navigate these circumstances, and try to ease their financial concerns – which won’t be easy given everything that’s going on.”
The research was carried out using Opinium’s IFA omnibus, the UK’s only dedicated research community of IFAs.