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Covid-19 'damage' boosting demand for financial advice

The financial damage caused by the Coronavirus pandemic is boosting demand for financial advice – with many consumers wanting face to face advice, according to research from adviser network Openwork.

Nearly one in five (17%) of adults say they are now more likely to seek financial advice in the wake of the economic damage caused by Covid-19, increasing to nearly one in four (23%) among under-35s.

One of the major spurs to seeking advice is the financial impact of Covid-19 for individuals. About a third (29%) of adults say the pandemic has knocked their Financial Planning “off course,” says Openwork.

The research found that lockdown and social distancing have not altered how people prefer to receive advice. Nearly two thirds of adults (63%) still want face to face support while 66% believe robo-advice may not meet their needs. 

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Over two fifths (44%) of adults saying they would benefit from some form of regular financial advice. Among 18 to 24-year olds over half (55%) says they would value financial support.

Some 36% of adults say that they would like their employer to offer access to financial advice with over a half of 18 to 24-year olds (60%) wanting their employer to offer access to financial advice.

Openwork’s research found that 52% of advisers agreed that Covid-19 has demonstrated the “true value of advice” and 35% say that the pandemic is increasing demand. Nearly half (47%) of advisers think that Covid-19 could mean firms need to recruit more advisers to meet demand.

Claire Limon, director of Learning and Acquisition at Openwork, said: “Despite the challenges posed by Covid-19 and the difficult last six months, it is absolutely clear that the demand for financial advice remains as strong as ever, especially among young adults who have only recently started their careers.

“To some extent it will be about repairing the financial damage of Covid-19, but it is also interesting that people still want to see advisers face to face despite social distancing.”

Openwork Limited has 4,000 financial advisers and operates as a directly authorised, multi-panel distribution network.

 • Research was conducted among 1,032 adults online between 10 – 12 June and among 117 financial advisers during August.

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