The proportion of rural residents saying they are more likely to seek financial advice almost trebled in the last quarter of 2024 amid the tougher economic backdrop according to new research from NFU Mutual.
The UK’s leading rural insurer questioned 382 customers in early November about their confidence in saving and investment as part of its twice-yearly investor sentiment study.
It found that the numbers of people saying they were more likely to seek financial advice jumped to 30 per cent in November 2024 up from 11 per cent in March 2024.
NFU Mutual’s study found that 59 per cent of those questioned said they strongly agreed or agreed that they were concerned about their finances in the next five years – up from 48 per cent in March 2024.
As a result, demand for advice has increased with around 35 per cent of those aged under 65 said they were significantly more likely to seek financial guidance, the study found. Farmers were also much more likely to seek financial advice in the near future with 45 per cent saying they planned to do so.
The report found that rural residents were now prioritising more of their disposable income on saving rather than spending on leisure and family activities – with 54 per cent in November 2024 citing it as their top priority against 50 per cent in March 2024.
Women and rural residents aged under 55 years old were more likely to prioritise savings (62 per cent and 66 per cent respectively). Women were also significantly more concerned about their finances over the next five years (71 per cent).
Caution about the economic outlook has led to more customers opting for lower risk savings – with many prioritising easy access cash Individual Saving Accounts (ISAs) and premium bonds. Regular saving is on the decline with saving and investing done on a more ad hoc basis, the study found.
David Nottingham, personal finance expert at NFU Mutual, said, “This study suggests an increase in financial concerns amongst the rural population over the past six months which explains why we are seeing an increased appetite for financial advice as rural customers seek to navigate uncertainty about their financial future.
“Inheritance tax is a particular concern for older participants, and many are worried about the impact on their pensions and finances. There is a big increase in people who are looking to seek financial advice, particularly among people under 65 and those who are concerned about tax efficiency and returns on their investments,” he added.