A bi-annual report from More2Life found that just 12 per cent of advisers said they had seen no vulnerable clients in the last year, a reduction from the 20 per cent who said the same in 2021.
More2Life said this suggested that advisers were getting better at recognising challenges in their client base.
The survey of 300 advisers also found that 30 per cent had seen clients in the last 12 months that they considered to be vulnerable, up from 15 per cent in 2021.
The cost of living effect
The lender said recent economic factors could also play a part in advisers getting better at spotting vulnerabilities, as well as the incoming Consumer Duty rules.
Some 31 per cent of advisers said the most common type of vulnerability was related to those who were impacted by the rising cost of living. Some 24 per cent said this caused clients to be more financially stressed than before, while 23 per cent said clients had fewer aspirations and more needs.
Additionally, 15 per cent said their retirement incomes were being stretched and they needed to increase their earnings, while 16 per cent said they were more open to discussing options such as equity release.
According to respondents, 42 per cent of clients with vulnerabilities are of an advanced age, while 14 per cent have been diagnosed with ill health.
Ben Waugh, managing director of More2Life, said: “The need to identify and support vulnerable customers has been a focus for the later life lending industry for some time and the upcoming Consumer Duty deadline has made this even more important. Today’s research suggests that advisers are becoming increasingly adept at identifying customers who need additional support and time to find the right options for their individual circumstances.
“While financial pressure from the cost of living crisis has been identified as a stressor for some, other challenges such worries around the need to repay interest-only mortgages, advanced age and dealing with a lifechanging event have remained consistent. The additional time and resources firms in this market have devoted to supporting these customers will pay dividends and consistent work to boost their understanding is vital.”
