25 June 2020
Clients who have spoken to their adviser during the Covid-19 pandemic are more likely to feel confident about their finances, according to Quilter research* with 1,000 consumers throughout the UK.
The findings come as Quilter launches its report How the pandemic is changing attitudes towards financial planning. The report, which is available on Quilter’s There For You website, offers insight for advisers on how their clients and potential clients are feeling and acting about their finances.
The study found close to two-thirds (65.6%) of those who spoke to their adviser during the pandemic have felt very well prepared (29.6%) or quite well prepared (36.1%) financially. This drops to just 42% for those that haven’t spoken to their adviser with just 13% saying they feel very well prepared.
Helping clients feel safe and secure during times of financial turmoil is an area where advisers offer huge value. However, the research shows that 1 in 3 advised clients hadn’t had contact with their adviser during the pandemic by the end of April.
It can be hard to balance when and why it is the right time to contact clients. Particularly, if for some clients there won’t be any changes to be made. However, the evidence suggests it is important for advisers to keep in touch with clients during these times of crisis as it gives a sense of trust and security that their finances are in good hands.
Mark Pittaccio, business consultant and behavioral economist at Quilter Financial Planning, said:
“Each and every client is going to have a different experience of the Coronavirus pandemic and being in lockdown. Some may be unable to work, living on a reduced income or struggling to keep their businesses afloat. Others will still be able to work and are likely to see their expenditure reduce over this period. Some may see no significant changes to their finances. We are all in the same storm but in very different boats.
“This data shows that clients feel reassured and confident when they’ve had contact with their adviser. Even if they don’t need to make specific changes to their plan, hearing from their adviser is something they value.
“There has never been a better time to engender trust. Sharing our experiences deepens that intimacy which is such an important factor in creating and maintaining trust. How advisers assist clients through this crisis will be remembered for a long time, so stock up on goodwill, empathy and compassion and make sure that they know you are there for them.”
*Research conducted for Quilter by Toluna of 1,000 UK adults In April 2020
Tim Skelton-SmithHead of External Communications
If you are covering the FCA’s statement highlighting measures to support consumers struggling with debt repayments after 31 October, please see the following commentary from Quilter corporate affairs director, Jane Goodland.
If you’re covering CPI inflation for September please see the following comment from Graham Crossley, head of development for Quilter’s medical advice business. Graham flags that the September CPI rate is what will be used to uplift NHS benefits, which means experts can predict this tax year’s pension annual allowance.