Financial advisers should prepare for a surge in new clients, according to Investec Wealth and Investment (UK).
The bullish statement has been prompted by research the wealth manager commissioned which found one in five (20%) retail investors are considering using an adviser’s services for the first time.
Investec Wealth & Investment, a part of Rathbones, commissioned Viewsbank to interview 1,065 UK adults, including 568 who have stockmarket investments.
The researchers also found around only a third (31%) of investors with stockmarket investments currently work with a financial adviser, but many of the remaining two thirds are open to it.
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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.
Of these, 21% of them estimate they will have investible assets of £250,000 or more when they make contact with an adviser.
Planning for retirement is the main reason cited for seeking out advice among those who do not already receive it. Around 28% said that was their reason, while 17% said it is because they are expecting an inheritance.
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Other findings included 19% saying they increasingly ‘do not have time’ to manage their investments or admit to doing a bad job, while 13% believe they will need more help as the value of their investments increase.
Nick Vaill, senior investment director at Investec Wealth and Investment (UK), 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.
“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.”
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