We’re living through difficult times. Inflation is rising, the tax environment is shifting rapidly and Russia’s invasion of Ukraine has created a new set of environmental, social and governance (ESG) considerations for investors.

In this climate, clients are seeking reassurance. They want to know what all of it means for their finances, and advisers are stepping up to the plate to support once again.

Our recent survey of over 400 UK-based advisers reveals the vast majority have spoken with their clients over the past six months about how to adapt their finances or portfolios in the wake of rising inflation.

This underlines just how much the issue is dominating conversations.

Adopting a variety of strategies

The pandemic is a recent example of how seeking advice gives people the practical tools they need to mitigate the impact of external events on their finances.

There’s never a one-size-fits-all approach, and our research finds advisers are using a variety of different strategies to help clients combat the effects of inflation.

They’re most frequently helping clients to:

Helping to navigate all the challenges

While inflation is arguably the biggest issue clients are currently facing, our research confirms advisers are helping people to navigate several other external challenges.

The majority of advisers have also discussed the impact of market volatility, ESG considerations linked to Russia’s invasion of Ukraine and the potential for higher taxes on their clients’ finances.

When it comes to the impact of Russian-linked ESG considerations, advisers are most frequently working with clients to adjust retirement income plans and move money away from Russian-linked assets, as required by sanctions.

Elsewhere, to help clients manage the impact of higher taxes, a fifth of advisers say they’ve increased the proportion of investments in a tax wrapper.

A further fifth have altered investment portfolio asset allocations to increase risk and potential return to mitigate the impact of market volatility.

Continuing to deliver good outcomes

What’s apparent from our research is that advice is about more than taking the practical steps to adapt finances or portfolios.

The relationship between advisers and their clients is exceedingly important.

The Consumer Duty legislation, due to become law next year, is a demonstration of the value advisers add to their clients by ensuring that their service continues to meet their clients’ needs in changing circumstances – and adapting their proposition to a change in their target markets’ needs, which is a key requirement of the Consumer Duty.

Advisers’ technical expertise will also continue to be invaluable – and they can be supported in their work here by the right platform solutions and tools. For example, built-in cashflow modelling shows clients how certain investment or tax choices may affect their overall financial position.

But clients also want a knowledgeable, friendly face who can explain to them the ‘why’ as well as the ‘what’. For example, many won’t have experienced the record levels of inflation we’re currently living through, and I’d expect to see more people seeking advice for the first time this year.

Advisers who show they’re a source of support in hard times will stand out from the crowd and, ultimately, deliver good outcomes for clients overall.

For more, see Market volatility – supporting client conversations

The value of investments can go down as well as up and your clients could get back less than they paid in.

The views expressed in this blog should not be regarded as financial advice.