Two out of three advisers say their main role at present is providing reassurance and support to clients rather than recommending specific financial products or strategies.
Research by Royal London found that that this can help consumers feel more confident and less anxious about their money.
The study found that only 21 per cent of financial adviser say their clients are anxious about the current cost of living; this compared to 46 per cent of the wider population.
Rising costs mean UK households are having to find an extra £441 a month on average compared to this time last year, causing real concern. This is due to rising inflation as well as higher interest rates.
Advisers said the main issues causing clients concern at the moment were inflation and market volatility. This was followed by the impact of interest rates on mortgage payments.
Royal London pensions expert Clare Moffat says: “Rising costs are having a dramatic impact on people and their emotional health and it’s at times like this with so much economic uncertainty that an adviser’s range of skills comes to the fore.
“Having a financial adviser to actively manage a client’s wealth brings many benefits, other than just the expected financial benefits. It’s the softer skills that advisers deliver alongside advice, like reassurance and peace of mind, that bring the value of financial advice to life for clients, helping them to feel better about themselves and their finances, especially in times of crisis.”
