Advisers work around the clock as 2020 uncertainty shifts the client conversation for good

  • As clients need further support, advisers saw a marked increase in the out of hours contact (52%) provided as 2020 sparks concern
  • Financial advisers say key concerns from clients are around income, funding later life and retirement delays
  • Advisers predict a rise in clients actively engaging with their finances in the months ahead

More than half (52%) of IFAs saw a marked increase in out of hours contact with clients as attitudes towards personal finances have shifted in the wake of Covid-19, according to new research from wealth manager Charles Stanley. Almost half (47%) also confirmed that clients required a significant level of detail on their investments and performance.

The research coincides with the launch of Charles Stanley’s new white paper ‘Book of Stories 2.0’, which gives advisers an insight into how to navigate the challenges of intergenerational wealth transfer and engage the next generation of clients in a fast-changing world. The study found that 2020 has been a pivotal year fundamentally altering the adviser 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.   Similarly, a third (34%) of consumers interviewed say that making plans to pass on their money to their families and inheritance is the main reason they would seek financial advice.

There are signs that the financial and digital disruption of 2020 has accelerated demographic changes which are likely to remain long after the Covid crisis ends. Well over two thirds (68%) of advisers say they have seen more engagement from younger audiences. And positively, a quarter (23%) of advisers say there has been greater appetite for ESG/sustainable investing from clients.

The events of 2020 have thrown many consumers’ financial plans into question prompting many to turn to their adviser to discuss financial worries. Seven in ten (70%) advisers say they’ve seen an increase in concern from clients over funding later life, while almost two thirds (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%)

Well over a quarter (28%) say 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.

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.”

The research also found that more than seven in ten (72%) advisers predict their clients will be more active and engaging in their finances in the months ahead.

Visit www.charles-stanley.co.uk/advisers/book-of-stories to get a free copy of the ‘Book of Stories 2.0’ whitepaper.  It is designed to help advisers understand and engage with the next generation and consider the changes to working practices needed to succeed in the intergenerational planning environment.



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