Following the coronavirus (COVID-19) pandemic outbreak, UK adults admit they need financial advice for their current situation[1]. A report, which looked at intergenerational planning and wealth transfer between advised families amid the financial volatility and insecurity of the pandemic, found that more than half (53%) of UK adults surveyed say they have prompted to seek advice from a financial adviser.

Of which, a third (33%) have already sought financial advice and 20% are planning to. Even those who say they aren’t seeking financial advice,15% say they might in the future. The research comes as an overwhelming 85% of respondents say they have financial concerns when thinking about the next 12 months, with one quarter of respondents having to dig into savings for living costs. Furthermore, investments losing money and have a reduced income, are most concerning.

Biggest financial concerns for those surveyed, for the next 12 months:
1 Having to use savings to make ends meet – 23%
2 Investments losing money – 20%
3 Having a reduced income – 18%
4 Being made redundant/losing a job – 17%
5 Social care/health costs – 14%
6 Not saving any money – 13%
7 Getting into debt – 11%
8 Having to financially support children – 11%
9 Not being able to afford to retire as planned – 10%
10 Having to ask parents or family for financial support – 9%

Financial advice needed by the younger generations
The report also revealed that the need for financial advice was felt greatest among the younger generations, with 74% of Millennials saying they had or were going to see an adviser, and 58% for Gen Z, driven by ‘getting into financial difficulty’ and ‘wanting to start their investment journey’.
While still pronounced, the need for advice decreases slightly with age. With 32% of Gen X, 21% of Boomers and a quarter (24%) of the 75+ age group saying the crisis specifically had driven them to seek advice.

Perhaps because younger generations, who have not necessarily been financially active during a financial crisis, have been made nervous by volatility – or have unspent monies to invest. The pandemic outbreak has been challenging for many adults up and down the country and this has stimulated the need for advice, be it because of pent-up cash levels, market volatility or job security.

Source data:
[1] Research was carried by Opinium for Prudential UK & Europe is part of M&G plc among a UK representative sample of 1,000 advised families. The survey was completed in November 2020.