The Rise of Financial Planning – Why are More People Looking for Fiscal Advice?


The financial advice planning industry represents a growing entity in the modern age, with APFA’s analysis from 2016 revealing that the market’s value increased from £2.75 billion to just over £3 billion.

This growth has been driven by a significant increase in demand, as hundreds and thousands of UK residents turn to financial experts such as Tilney to manage their combined assets.

But what has driven this increase in demand? Below, we’ll address this question in further detail and consider the future of the market.


  1. The Rise of Economic, Social and Geopolitical Uncertainty


Since the Great Recession in 2008, the financial and economic landscape of the UK has changed considerably.

From the introduction of more stringent regulations in the financial markets to the emergence of peer-to-peer lending platforms, both individuals and businesses have been forced to adapt to their constantly changing surroundings.

These challenges have been compounded by Brexit, which has threatened the UK’s place in the lucrative single market and created volatility in the economy as a whole.

As a result of this, people have turned in their droves to financial advisory and planning teams, so that they can fully understand how these risks impact on their wealth and create strategies that help to negate these.



  • Addressing the Impact of Inflation and Interest Rates



While the UK inflation rate may have fallen to a 12-month low of 2.5% in March, this remains well above the Bank of England’s (BoE’s) 2% target and disproportionate to national earnings.

Similarly, the BoE also raised the base interest rate for the first time in a decade at the end of last year, from 0.25% to 5%. This may seem like a relatively small and incremental hike, but it may have a cumulative effect on individuals with variable or tracker rate mortgages throughout the UK.

Not only will this increase the cost of living further for some households, but it also highlights how macroeconomic elements are often manipulated by Central banks to maintain a necessary balance.

Given this, and the impact that shifting inflation and interest rates can have on household finances, it’s little wonder that people are seeking out expert financial advice to help them adapt.



  • As the Planning Market has Grown, so too has Market Competition



As the demand for financial services has grown among private citizens, this marketplace has also benefited from increased exposure and awareness.

This, in turn, has created significant levels of competition in the marketplace and reduced the cost of sourcing financial advice in the first instance, highlighting a positive cycle of growth and productivity.



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