Financial advisers need to get ready for a surge in new clients with one in five retail investors considering using their services for the first time, new research from wealth manager Investec Wealth & Investment (UK) shows.
The study by Investec Wealth & Investment (UK), part of Rathbones Group, found around a third (31%) of investors with stock market investments currently work with a financial adviser and that there’s significant potential for new adviser clients among the rest.
Around six out of 10 (59%) of those who do not get support from a financial adviser are considering doing so within the next two years, with 29% looking to get advice within the next 12 months. Around 21% of them estimate they will have investible assets of £250,000 or more when they contact an adviser for help.
Planning for retirement is the main trigger for seeking out advice among those who do not already have support. Around 28% said that was their reason for seeking advice while 17% say it is because they are expecting an inheritance.
Around 19% say they increasingly do not have time to manage their investments or admit to doing a bad job and needing help while 13% believe they will need more help as the value of their investments increase.
Commenting on this, Investec Wealth & Investment (UK) senior investment director, Nick Vaill, said: “Demand for advice is set to rise given the high number of retail investors who do not currently use an adviser who are considering seeking help in the next few years.
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By GlobalData“It is good to see that retirement planning is the main reason for people to get support from an adviser, but it would be even better if people were planning as far in advance as possible and not waiting until the last minute.”
Investec Wealth & Investment offers an award-winning, bespoke discretionary managed investment service which is highly flexible and built around adviser’s clients’ individual preferences and specific investment goals. It can also be applied to almost any investment structure, including joint or sole accounts, ISAs and trust assets.
Once the adviser has agreed the most suitable mandate with their client, their portfolio will be actively managed on a discretionary basis. This enables advisers to leave the day-to-day decision-making to Investec and allows Investec to respond quickly to market changes or capitalise on opportunities that are in the best interest of the adviser’s client.
