Two thirds of advisers say main role is to provide reassurance

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Two thirds of advisers say main role is to provide reassurance
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Two thirds (66 per cent) of advisers said their main role through the cost of living crisis is to provide reassurance and peace of mind for clients, according to research by Royal London.

While financial advice delivers many benefits, in a time of challenging economic conditions it’s the emotional support that clients value the most, according to advisers.

Royal London’s research on the impact of the cost of living crisis, carried out with more than 200 financial advisers, identified peace of mind and reassurance as the main benefits of advice.

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.”

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. 

However, the findings showed much less concern from those who can turn to a financial adviser. 

Nearly half (46 per cent) of consumers said they are extremely or very worried about costs, compared to just 21 per cent of advised clients, according to financial advisers.

Royal London said 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. 

Advisers said inflation and market volatility are causing clients the most concern, followed by the impact of interest rates on mortgage payments.

sonia.rach@ft.com

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