According to Embark’s Investor Confidence Barometer, advisers believe that only 39% of clients’ will avoid being worse off following the pandemic.
Among advised investors, over a quarter (26%) were more confident that they will achieve their long-term financial objectives compared to before the pandemic began. Only 8% felt less confident.
However, the report found a lack of confidence from investors overall of being able to meet their retirement plans.
Just under a quarter (24%) of advised investors said they were very confident (36% somewhat confident) that they will have enough money to meet their retirement plans, dropping to 18% of unadvised investors (36% somewhat confident).
Confidence in investment portfolios was much higher for investors that use an adviser.
Only 12% of unadvised investors were very confident (31% somewhat confident) that their investment portfolio will grow sufficiently to provide the money to meet their needs post retirement, significantly lower than investors with an adviser (25% very confident, 38% somewhat confident).
Financial advisers surveyed for the report said that just over a third (37%) of their clients will have enough money to fund their retirement plans.
The report also revealed that more potential clients have considered seeking advice since the pandemic begun. One in three unadvised investors surveyed for the report had considered seeking advice. Almost half (49%) of 35-44-year-olds surveyed without an adviser were considering seeking advice, compared with 21% of 55-64 year-olds.
• Censuswide conducted the survey of 1002 UK investors and advisers in November 2020. The survey encompassed 250 advised consumers and 502 unadvised consumers with a minimum of £100,000 of investible assets (who had a pension and were aged 35-70), and 250 financial advisers whose firm had assets of less than £500m.