Almost half (46%) of Financial Planners have had clients withdrawing funds from their investments to cover essentials bills and address income shortfalls due to the cost of living crisis, according to a new report.

Over 1 in 3 (35%) of advisers have seen clients deviating from previously set plans due to the crisis, according to the research from Standard Life.

Other advisers have seen clients shifting towards cash.

A third (36%) of the advisers surveyed said clients have taken money out of investments to establish or bolster rainy day funds to guard against unforeseen emergencies and financial shocks.

The cost of living crisis has also influenced investment decisions.

Three in ten (29%) advisers said clients have chosen to shift their investments towards lower-risk options to mitigate potential market volatility.

Chris Hudson, retail advised managing director at Standard Life, said: “The economic backdrop is having a stark impact on people’s finances, causing many to reassess their plans. There’s a lot to contend with – from sky high mortgages, rising interest on debts and ever changes tax rules – and it’s important to factor all of this into Financial Planning.

“In this increasingly complex environment, financial advisers have a crucial role to play in navigating their clients through it all and helping them withstand the turbulence as best possible. This will give peace of mind to clients, as well as hopefully help them weather the financial storm.”

Pureprofile surveyed 100 financial advisers in February on behalf of Standard Life and AKG.

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