The ongoing cost of living crisis is putting financial pressure on many UK households. As such, your clients may find that their income doesn’t stretch as far as it used to, or they might be struggling to save as much as they’d like for future expenses.
2025 has also seen rising unemployment, significant market volatility, and geopolitical tensions, such as the Ukraine-Russia conflict and instability in the Middle East.
So, it’s unsurprising that a survey by credit card company, Aqua, has revealed that 11% of UK adults feel “uncertain” about their finances.
Many people are particularly worried about their financial future. Research published by PensionsAge has found that 60% of UK adults worry they haven’t saved enough for even a “moderate” standard of living in retirement.
A financial planner can play a crucial role in helping your uncertain clients feel more in control of their financial wellbeing. Keep reading to find out how.
Boost confidence through improved financial literacy
According to FTAdviser, nearly 24 million UK adults have poor financial literacy, making them £20,000 worse off compared to those with good financial knowledge.
This lack of understanding could not only damage your clients’ bank balance, but it may also lead to heightened stress and uncertainty.
A financial planner can: Identify any gaps in an individual’s money management knowledge or skills and provide tailored education, support, and guidance.
By explaining complex financial jargon and strategies in an accessible way, a financial professional can empower your clients to take control of their wealth and build positive money habits.
Gain clarity by identifying long-term financial needs and goals
Goal setting is a crucial part of effective financial planning. If your clients don’t have a clear idea of what they want to achieve or how their lives might look in the future, uncertainty could set in.
Yet, it’s not always easy imagining how life could be many years from now. Indeed, your clients’ circumstances and aspirations may change significantly over time. As such, they might struggle to identify their long-term financial needs and goals.
A financial planner can: Use cashflow modelling to give your clients a clear picture of how their income might look over different periods of time, based on their current financial situation.
This advanced software can take into account key financial factors, such as life expectancy, planned future one-off payments, and changes in inflation. It can also show how various scenarios, such as retiring at different ages, could affect your client’s financial needs.
These insights are essential for setting realistic goals and creating a plan for achieving them. During uncertain times, having this direction could help your clients stay focused on their personal journey, rather than being distracted by external factors such as rising inflation and market volatility.
Remove uncertainty through effective budgeting and financial planning
If your clients have become disengaged from their finances, budgeting and financial planning could help them regain control of their wealth.
Whatever an individual’s financial situation, budgeting is essential for avoiding overspending, minimising debt, and building a consistent saving and investing habit. By regularly reviewing and adjusting their budget, your clients can adapt to change and build their financial resilience.
Likewise, creating a structured financial plan could help your clients understand the practical steps they need to take to achieve their goals. As such, financial planning can be a powerful tool for removing uncertainty about the future.
A financial planner can: Review your clients’ finances objectively and help them to address issues such as overspending or missed opportunities to save and invest.
Moreover, through impartial and empathetic advice, a financial professional can encourage data-driven, rather than emotional, decision-making. So, instead of reacting to situations based on uncertainty and fear, your clients are more likely to make informed choices that align with their financial plan.
Alleviate stress by managing debt effectively
The rising cost of living in recent years has forced more people to borrow money. The latest figures released by the UK Parliament show that around 84% of UK adults had some form of credit or loan in the 12 months to May 2024.
While certain types of borrowing, such as mortgages and business loans, can be a useful way to achieve key life goals, unmanageable debt could be extremely stressful.
A financial planner can: Assess your clients’ finances and form a personalised debt management strategy. This might include paying off high-interest loans and credit cards first, redirecting unnecessary spending to repay borrowing, or consolidating debts.
A financial planner can also provide the emotional support and accountability your clients need to stay motivated to clear their debt and build more positive money habits.
Build financial resilience by preparing for the unexpected
No one can predict what’s around the corner. As such, a degree of uncertainty about the future is inevitable.
Whether your client feels comfortable with this uncertainty or worried by it may depend on how prepared they are to cope with any unexpected financial shocks.
A financial planner can: Advise your clients on effective ways to enhance their financial resilience, such as:
- Building an emergency fund – Between three and six months of living expenses is generally recommended, but the amount will depend on your clients’ individual circumstances.
- Taking out adequate financial protection – Selecting appropriate cover, or reviewing and adjusting existing cover, to meet current needs.
- Registering a Lasting Power of Attorney – To ensure that someone they trust has the legal authority to manage their affairs if they become unable to do so.
- Estate planning – To ensure their wishes are followed and their dependants are provided for in the future.
- Regular financial reviews – Seeking advice regularly or if a significant life event occurs, such as divorce, could ensure that your clients stay on track to achieving their goals.
Get in touch
If you have any questions about how we can support your clients with all their financial needs, please get in touch.
Email hello@sovereign-ifa.co.uk or call us on 01454 416653.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The Financial Conduct Authority does not regulate estate planning or Lasting Powers of Attorney.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
Approved by Best Practice IFA Group Ltd on 15/8/25