In Focus: Modern financial planner  

Over half of advisers expect demand for advice to grow in next 5 years

Over half of advisers expect demand for advice to grow in next 5 years

Almost half (46 per cent) of advisers said clients are more concerned with their financial wellbeing now versus a year ago during the pandemic. 

According to Fidelity Adviser Solutions’ latest IFA DNA report, 58 per cent of advisers expect demand for advice to grow in the next five years - more than at any point since before the pandemic.

This is up from 55 per cent in both 2021 and 2020, with many already seeing evidence of this growing demand.

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The research, which was based upon a survey of 204 advisers in May, found that advisers expect to have a more significant role in helping clients to navigate economic challenges now than at any other point in the past three years.

Commissioned through NextWealth, findings revealed that nine out of 10 (91 per cent) advisers have taken on new clients in the past year compared with 84 per cent a year ago - with 16 per cent of these taking on more new clients than usual, compared with 8 per cent the previous year. 

Current and future demand for advice

% of advisers who expect the demand for advice to increase in the next five years55%55%58%
% of advisers who have taken on new clients in the previous yearN/A84%91%

Head of Fidelity Adviser Solutions, Jackie Boylan, said: “The past few years have been characterised by change and uncertainty, prompting many of us to pause and reflect - considering both the challenges and opportunities these changes present. 

“However, it’s clear the toughening economic climate is taking its toll, with advisers reporting more clients concerned about their financial situation now than during the pandemic.”

Advisers reported seeing an increase in the number of clients wanting support with intergenerational wealth transfers. 

More than half (55 per cent) noted an increase in demand for help - up from 36 per cent last year - with 13  per cent referring to this increase as ‘significant’ (versus 1 per cent last year).

The need for support in navigating more complex areas of personal finance (23 per cent) is expected to be the main reason behind this demand for advice, along with growing awareness of the importance of financial planning (22 per cent) and shifting personal circumstances (12 per cent). 

Of those who expect to attract new clients in the next 12 months, 62 per cent expect these to come from in the form of referrals from existing clients and contacts.

Numbers of new clients acquired in the past year

More new clients than usual8%16%
Same level of new clients as usual33%56%
Fewer new clients than usual43%20%

With economic challenges on the horizon, almost half (46 per cent) of IFAs said their clients are more worried than usual about their financial wellbeing - up from 35 per cent a year ago. 

The rising cost of living (39 per cent), possibility of market decline (36 per cent) and geopolitical uncertainty (33 per cent) are all cited as causes for concern.

“Many clients will be worried about the combined impact of market volatility and the rising cost of living upon their financial goals,” Boylan said.  

“Having a clear awareness of their income, outgoings and long-term savings is now more important than ever. Advisers have a vital role to play by helping them to consider different options and how to adjust their plans in the event their circumstances change.”