Financial advisers are seeing significant changes in client behaviours as the UK’s economic outlook remains uncertain, according to a survey by AKG sponsored by Standard Life.

As the cost of living crisis persists, the research suggested that financial advisers are seeing many clients withdrawing funds to “plug the shortfall” or opting for a more cautious approach to their finances.

Close to half (46%) of advisers have noticed clients withdrawing more funds to cover essential bills and address immediate income shortfalls.

Even those who may not be immediately struggling have still reassessed their approach, the research showed. Over a third (35%) of advisers have seen clients deviating from previously set plans by withdrawing money.

Clients are increasingly cautious

Over a third (36%) of advisers have noticed clients taking out money to establish ‘rainy day funds’, as the economic uncertainty and strain of the last few years prompts individuals to plan and save more.

The uncertainty has influenced investment decisions as well, the survey suggested, with three in ten (29%) advisers seeing clients choosing to shift their investments towards lower-risk options to mitigate potential market volatility.

Standard Life retail advised managing director Chris Hudson said: “The economic backdrop is having a stark impact on people’s finances, causing many to reassess their plans. There is a lot to contend with – from sky high mortgages, rising interest on debts and ever changes tax rules – and it is important to factor all of this into financial planning.

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