The vast majority of financial advisers (89%) feel positive about their business this year with only 11% pessimistic.
Some 14% say they are very optimistic, according to a new survey.
Despite major economic challenges, the majority of financial advisers, Paraplanners and adviser business owners (advisers) say they feel optimistic about business in the coming months, according to the survey.
Standard Life surveyed 600 financial advice professionals for the survey which comes amid a backdrop of poor UK economic growth, soaring inflation and economic concerns.
Despite the optimism, Standard Life, part of Phoenix Group, said its research did reveal “widespread concerns” about economic factors that could have more of an impact in the next year.
More than two in five feel pessimistic about the economic recovery and investment returns (both 44%), while 70% were downbeat about cost-of-living issues.
Some 63% of advisers said market volatility was a key issue with clients at present.
Despite the challenges many expect business to grow this year, a factor Standard Life said underlined the “resilience” of the adviser sector.
Key current adviser challenges highlighted by the survey:
- Servicing existing clients (36%)
- Consumer Duty (35%)
- Costs of running the business (33%)
- Compliance (33%)
- Cost of living issues (32%)
Chris Hudson, retail advised managing director at Standard Life, said: “The economic environment has been particularly turbulent in the last year, and advisers have had to contend with and support their clients through unforeseen circumstances. While these and other challenges are likely to persist for some time, the fact that they are feeling optimistic demonstrates their resolve and the sector’s resilience in the face of uncertainty.
“Furthermore, significant industry developments like Consumer Duty are approaching which will put further strain on advice businesses. But such developments, along with recent changes to pension taxation and allowances in the Spring budget, create business opportunities to engage clients in value adding conversations.
“It’ll be a busy year for advisers, but with consumers facing a difficult financial climate and pressures on their ability to save, it’s more important than ever that they can rely on expert advice to help navigate this period.”
• Research is based on a Standard Life adviser relationship tracker that monitors satisfaction and attitudes from a random sample of contactable advisers, Paraplanners/admin and Business Owners. More than 600 took part in the survey with 460 completing all questions in the fieldwork carried out in October.
