Nearly half (46%) of financial advisers have reported that their clients are withdrawing funds to cover essential bills and address immediate income shortfalls, Standard Life has found.

In a survey by AKG, which was sponsored by the saving and retirement business, it was found that even those who may not be immediately struggling financially have reassessed their investment approach, with over a third (35%) of advisers seeing clients deviating from previously set plans by withdrawing money.

Furthermore, 36% of advisers have noticed clients taking out money to establish “rainy day funds”, with recent economic uncertainty prompting individuals to plan and save for further financial shocks.

The research also found that almost three in 10 (29%) advisers have seen clients shift their investments towards lower-risk options to mitigate potential market volatility.

Retail advised managing director at Standard Life, Chris Hudson, 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.”

Communications director at AKG, Matt Ward, added: “We simply cannot get away from the conversation about the seismic impact of the past few years on UK consumers, nor should we. What has been experienced needs to be acknowledged and understood by the financial services industry so that a positive future can be built upon from here.

“And whilst not all of this will make such positive reading it should help to plot a path through vulnerable customer and Consumer Duty development strategies, as well as enabling advisers to prove how helpful they can be.”

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