Just over a third (41 per cent) of advisers are having more conversations with clients about investments and the economic environment compared to two years ago.
According to research by Royal London, during the same period, 34 per cent of advisers saw an increase in the level of drawdown withdrawals.
While 33 per cent of advisers have seen an increase in clients pulling money out from pensions or investments to help family members.
Clare Moffat, pensions expert at Royal London, said: “The last few years have been challenging for many, no matter where you may be on the ‘wealth ladder’.
“Unsurprisingly, the economic instability and higher inflation coupled with the increase in interest rates has seen a significant move to cash.”
The adviser research was conducted by Royal London and Opinium from October 27 to November 27, with 503 respondents.
It found the climate of rising interest rates, coupled with volatile market conditions over the past two years, saw 37 per cent of advisers noting an increase in clients moving money to cash.
On a positive note, 36 per cent of advisers have seen a reduction of clients cancelling protection policies.
Moffat said: “It’s also interesting to see the increase in the number of people using their savings to help family members, demonstrating the financial instability across generations.
“This confirms a trend we saw in adviser research we conducted earlier this year which found a quarter of requests are from clients who want to release money for their adult children.”
She added: “The value advisers bring to a client relationship is never more important than in times of uncertainty where they can offer advice and reassurance.
“It also demonstrates the cost-of-living crisis has had an effect across the economic spectrum creating dependencies that perhaps weren’t once there.”
sonia.rach@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
