The cost-of-living crisis is the single biggest driver for people accessing financial advice or guidance as they seek support to navigate the economic uncertainty.

St. James’s Place (SJP) published research showing that 18 per cent of people who accessed advice did so due to the cost-of-living crisis.

Other macro trends also prompted action, with 13 per cent seeking support due to changes in the economic environment, 10 per cent due to high mortgage rates, 7 per cent following policy changes, and 5 per cent after a change of government.

While cost-of-living concerns were the largest single driver, major milestones were the largest collective catalyst, with 48 per cent of people who have accessed advice did so following a major life event.

Almost a fifth (17 per cent) of those seeking advice did so after reaching a certain age, while 15 per cent accessed advice when buying a property, 12 per cent when receiving an inheritance, 10 per cent at retirement, and 10 per cent when getting married.

The study of nearly 12,000 people also highlighted that unexpected changes and challenges were key drivers of financial advice or guidance, with 12 per cent seeking support following a change in job status, 6 per cent following divorce, and 6 per cent after caring for loved ones.

There were also positive reasons for taking advice, as 18 per cent had accumulated a savings and investment pot large enough to warrant it, rising to 27 per cent of those currently receiving ongoing financial advice.

Referrals and recommendations were also common prompts for taking advice or guidance, with 15 per cent of those who have received advice or guidance doing so following a personal referral, and 8 per cent because they had a family adviser.

SJP’s study also found that those aged 55 and older were largely prompted by more ‘simple’ reasons, such as reaching retirement (21 per cent), savings hitting a certain level (20 per cent), or reaching a certain age (20 per cent).

By comparison, people aged between 18 and 34 were more likely to seek advice to navigate more complicated issues, including the cost-of-living crisis (24 per cent), to get on the housing ladder (17 per cent), high mortgage rates (16 per cent), and care costs (12 per cent).

“Big life events and milestones make people stop, assess and plan, and often they prompt people to undertake some financial planning too,” commented SJP director partner engagement and consultancy, Alexandra Loydon.

“While it’s clear that one of the greatest benefits of financial advice or guidance is the support it can offer in times of change or stress, the key to navigating those moments is putting a strong financial plan in place ahead of time.

“Seeking the support to do so not only boosts mental and emotional wellbeing, but provides the confidence to reach life’s goals and milestones in the first place.

“Younger generations face a very different landscape to their parents and grandparents, from higher living costs and a tougher housing backdrop to the decline in defined benefit pension schemes meaning greater individual responsibility for their retirement.

“This increasingly testing and complex backdrop means it’s even more important to be thinking about and taking action to build up finances as early as possible.

“Advice and guidance can help with understanding these issues, and with putting measures in place to ensure their money works as hard for them as possible, no matter what their circumstances are.”

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