A 71 per cent majority of advisors believe their clients are planning on working longer, according to BlackRock's Investor Pulse Adviser Survey.

Seven in ten UK advisors say their clients are bracing themselves for a longer professional life, as compared to five years ago, amid fears of insufficient retirement savings, according to new research by BlackRock.

The popular opinion that people are planning to retire later ties in with the 70 per cent of advisors who think clients are worried about outliving their retirement savings. Two-thirds of advisors said their clients are concerned about the potential cost of funding long-term care.

Advisors further highlighted shortcomings in their clients' savings plan, with four out of five pointing towards an over-allocation to cash or an approach that is too risk-averse. Meanwhile, 39 per cent said another common investment mistake was a disregard for inflation. 

In a bid to move away from cash-heavy portfolios, 40 per cent of advisors plan to boost clients' exposure to equities while over a third are encouraging further multi-asset investments. The strategy parallels recent research predicting an upswing in allocations towards multi-asset funds.

Interestingly, a healthy 65 per cent of advised investors are upbeat about the stock market but only 29 per cent are prepared to take a less cautious investment approach.

“Advisors are increasingly encouraging their clients to invest for lifetime goals, particularly as they believe two-thirds of their clients are concerned about outliving their savings in retirement,” said BlackRock's head of UK retail sales, Jeremy Roberts.

“Therefore, advisors are spending more time educating their clients on the implications of holding too much cash and how inflation, whilst at zero levels today, is the silent killer of savings over the long term.”

As for the short term, as uncertainty persists ahead of the tight UK general election, half of advised investors believe the state of the UK economy to be a risk to their financial future. BlackRock linked the concerns to the freshly enacted pension reforms, which have given pensioners increased freedom over how to navigate their retirement pots.

“With increased choice comes greater financial responsibility and people of all ages, not just those approaching retirement, must think carefully about their income needs, their over-reliance on cash, and importantly, how their savings are invested for the longer term,” said Roberts.