As a financial planner, I am privileged to see a wide array of characteristics in my clients.
When a new client walks through the door, you never quite know how that meeting will pan out.
Thankfully, to seek advice in the first place, there is often an acknowledgment that the client is looking for help in one way or another.
But the experience that client brings compared with another can be vast. Some are already confident with their money and know what to do with it — although that can also act as a hindrance at times.
This is our opportunity to shift from experts who inform to professionals who empower
What we are increasingly seeing, however, are psychological barriers that are getting in the way of people making a plan with their money.
There is a silent epidemic walking into our advice meetings, and too often we mistake it for apathy, disengagement or clients not being ready to invest.
Financial imposter syndrome (FIS) is a subtle but powerful threat. It can make those affected feel isolated in their financial capabilities, accompanied by the inner voice that says, ‘I’ll never be good with money,’ or, ‘People like me don’t invest.’
Much like traditional imposter syndrome, the fear of being a fraud can be overwhelming, but new research shows that this self-deprecation can directly impact financial behaviour.
Symptoms include attributing success to luck, relying on others’ help, faking financial knowhow or doubting one’s own money-management skills.
As advisers, we pride ourselves on addressing financial literacy gaps. But this is different. This is a confidence gap, and it is costing clients their long-term financial wellbeing.
This is not just a consumer problem
Our research reveals that 3mn UK adults are affected by FIS, with a further 5mn showing symptoms. Additionally, it is not limited to lower incomes. Nearly one in four people earning more than £80,000 a year show signs of FIS.
This means some of the most outwardly successful clients, those we assume are financially empowered, are having quiet thoughts that they have not got to where they are from their own skill and determination.
This mindset is holding both existing and prospective clients back from taking proper control of their money, asking questions and taking action.
We see so much of that present itself in the level of cash savings that could be better served by being invested — Barclays puts that figure at £610bn.
If we do not learn to spot it, we risk letting clients sleepwalk into poorer outcomes, not because they lack money but because they lack self-belief.
How FIS shows up
Advisers will recognise various behaviours but may not have previously labelled them.
Phrases such as, ‘I don’t have enough to see an adviser’ and, ‘I’m not an investor’ reinforce the fact that 28 per cent of people do not believe their wealth is worthy of financial advice, and a further 25 per cent do not consider themselves investors, even though most already invest through their workplace pensions.
If someone does not see themselves as an investor they disengage with long-term financial decisions.
Beyond this, those who do seek financial advice often are over-apologetic and overprepared when it comes to meeting with their financial adviser.
On the other hand, clients who nod along, not asking questions but sign the paperwork, often do so not because they understand, but because they are fearful of showing that they do not. Many of us think we need to bluff our way through conversations about money.
How advisers can support
Our profession often focuses on the technical aspect of personal finance, but confidence-building is becoming just as critical.
If a client does not believe they deserve to build wealth, the best-laid financial plan will wither.
There are, however, some small things we can do to help dismantle FIS in practice:
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Normalise the conversation about money — Open with reassurance to remove any shame and unlock honesty.
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Praise good decisions, not just outcomes — If every win is labelled luck, help clients recognise the choices they made that led there.
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Replace jargon with empowerment — Translate complexity into something clients can explain back.
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Encourage small, early financial wins — For example, a 1 per cent pension contribution increase creates tangible progress and builds self-belief.
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Be the accountability partner, not just the planner — Making money a talkable topic reduces stigma and builds confidence.
FIS is not a niche behavioural quirk. It is shaping client behaviour across the UK.
If the advice industry does not adapt, we risk delivering plans that are technically suitable but psychologically unusable.
This is our opportunity to shift from experts who inform to professionals who empower, creating a tangible and understandable plan for our clients’ money.
Holly Tomlinson is a financial planner at Quilter
