New research has shown that 60% of Financial Planners expect clients to start managing more of their investments, such as pensions and ISAs themselves, instead of using an adviser.

Just over a quarter (26%) expected the level of time clients spend on managing their investments to stay the same, and 14% expected them to spend less time managing their investments over the next five years.

According to the survey from ETF provider GraniteShares, when asked why they expect more clients to start managing their own investments more, 26% said it will be due to it becoming harder to find a good Financial Planner due to many advisers retiring or leaving the profession.

Half of Financial Planners said clients are turning to more self-service because there is an increasing arrange of tools and features available to them to do this, such as digital wealth management platforms. Over a third (38%) cited the fact that there is now much greater access to market data making it easier to decide on investment decisions, and the same number (38%) said it is because investors want to reduce the amount they pay in investment charges.

One in three (34%) said it is due to there being more funds and investment products for investors to use that do not require the need for an adviser.

Will Rhind, founder and CEO at GraniteShares said: “The stock market volatility since the outbreak of the coronavirus pandemic has provided a backdrop for wealth managers and IFAs to demonstrate their worth in advising clients and adjusting portfolios to help meet particular investment goals. It has been a difficult time for all investors but there is no question that an increasing number are looking towards self-directed solutions to keep costs down.

“This is also happening because there is a combination of better information and more investment products available to investors than ever before. These products offer an array of different investment strategies and exposures. Some retail investors – especially the more sophisticated ones – may feel comfortable using these themselves without the need for any professional advise – but these new investment products also present an opportunity for IFAs and wealth managers to both help guide clients through the volatility and deliver better outcomes.”

GraniteShares carried out the survey of 50 Financial Planners using Pureprofile to carry out interviews during February 2020.