Over one in ten (12%) of financial Planners have seen clients postpone retirement due to the cost of living crisis.
Almost half (42%) of Financial Planners surveyed by the Personal Finance Society (PFS) had seen clients reducing their spending.
A further 37% had seen clients pull cash out of their savings to cope with increased costs, and 8% had seen increased borrowing to keep going in the current economic client.
Planners surveyed also saw an increase in the number of consumers shopping around to deals as average wages failed to keep pace with inflation.
One in five Chartered Insurance Institute (CII) members said they had seen clients reducing the amount of cover to reduce their costs, with 18% seeing policies being allowed to lapse.
Matthew Connell, director of policy and public affairs at the CII, said: “Many consumers have never seen costs increase at this speed. With such a significant reduction in disposable income it makes sense to act now to ensure your finances are in the best shape possible. But taking a good, hard look at your finances rather than just spending less is essential in the current climate.
“Increasing debt levels or cutting back on insurance cover today could cause consumers more serious problems in the future and compromise their future financial resilience. Financial planners can help consumers review their lifestyle, face today’s cost of living challenges and future proof their finances.”
The PFS surveyed 723 Financial Planners and insurance professionals in June via social media.
