Cost-of-living pressures are leading to more consumers taking professional financial planning advice

by | Oct 4, 2022

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Rising inflation and cost-of-living pressures are leading to more and younger people taking advice from professionally qualified Financial Planners. The findings in a national survey* carried out by the Chartered Institute for Securities & Investment (CISI) comes on the eve of the 2022 UK Financial Planning Week (03-09 October) #FPWUK.

The poll clearly shows the impact of the cost-of-living crisis and the more recent inflationary and interest rate pressures on personal finance decision making. Almost 80% of those financial planners polled said clients are concerned about the toll on their household from cost-of-living pressures.

Some 32% cited rising inflation as the biggest concern among clients when it comes to financial planning, this is just behind having enough money to retire (42%). Some 37% of those polled said the age range of potential clients is younger than it was a year ago. And the number of women seeking advice is rising, according to 12% of respondents.

The 2022 UK Financial Planning Week comes as the cost of living is soaring, inflation and interest rates are rising, and as the markets and sterling are falling. This year the week-long event is about busting myths around financial planning and encouraging conversation around finances. The aim is to help consumers take control of their finances now, to shape their future and reach their goals.

The CISI’s poll reveals a sharp increase in people seeking professional financial planning advice. More than 56% of Financial Planners, including Certified Financial Planner™ professionals are busier with existing clients than they were a year ago

Other findings include:

• One in 10 of those polled reported an increase in the number of women seeking financial planning guidance.

• Meetings overall with financial planners are up on last year, with 46% of financial planners reporting an increase.

• Retirement planning remains the biggest issue on which clients seek advice (74%)

• Almost 90% of respondents said they were concerned about overall literacy skills among the public

However, there are signs that with careful financial planning and professional advice, consumers can still achieve their goals. Almost 90% of financial planners said their clients are maintaining their life goals despite the current economic climate, through lifestyle adjustments. Overall, some 74% of respondents said their clients feel optimistic about their financial plans.

Sally Plant, CISI Assistant Director, Financial Planning and Education Development said“Mental wellbeing is critical to a healthy, happy life. There is clear evidence that with a financial planner at your side, consumers can achieve their life goals, even during challenging times. It’s part of the fitness plan for your brain. Financial Planning Week helps raise awareness about the role of financial planners in helping people from all walks of life, and all ages – and importantly, not just the wealthy – to think ahead and plan for the future.”

The CISI research comes alongside a 10-day social media campaign, #10DaysOfFinancialPlanning, to underline the importance of taking professional advice – and that it is available for all.

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