Some 46% of financial advisers have reported clients withdrawing funds to cover essential bills and immediate income shortfalls, an AKG survey sponsored by Standard Life has found.
Amid the cost of living crisis advisers are seeing significant changes in their clients’ behaviours with 35% reporting they have seen clients deviating from previously set plans by withdrawing money.
Even those who may not be immediately struggling have reassessed their approach with over a third of advisers noticing clients take out money for a ‘rainy day fund’ incase of unforeseen emergencies and financial shocks.
Economic uncertainty has also influenced investment decisions as 29% advisers said clients are choosing to shift their investments towards lower-risk options to mitigate potential market volatility.
Retail advised managing director at Standard Life Chris Hudson, said: “There’s a lot to contend with from sky high mortgages, rising interest on debts and ever changes tax rules and it’s important to factor all of this into financial planning.
“In this increasingly complex environment, financial advisers have a crucial role to play in navigating their clients through it all and helping them withstand the turbulence as best possible. This will give peace of mind to clients, as well as hopefully help them weather the financial storm.”
Matt Ward, communications director at AKG, added: “What has been experienced needs to be acknowledged and understood by the financial services industry so that a positive future can be built upon from here.
“And whilst not all of this will make such positive reading it should help to plot a path through vulnerable customer and Consumer Duty development strategies, as well as enabling advisers to prove how helpful they can be.”