Financial planning will be more in demand in the next five years, partially because of the rapid growth in the number of people preparing for retirement, according to the board that owns the Certified Financial Planner mark outside of the United States.

Demand will also grow as more young people seek the help of financial advisors, said the Financial Planning Standards Board. The board conducted a survey of 4,250 CFP professionals in 23 countries to determine their views on the future of financial planning over the next five years.

Eighty-two percent of survey participants said they expect increased demand for financial planning services over the next five years. It will come in part from pre-retirees and young people, but the growth will also be spurred on by increased levels of consumer awareness of the value of financial planning and by the need for professional advice caused by global economic uncertainty, the survey said.

“Not surprisingly, given the importance placed on retirement, CFP professionals listed retirement security, investment planning, managing inheritance and wealth transfer to the next generation and finances associated with aging and long-term care as the top items they expected financial planning clients would want them to address in the future,” the study said.

It's also key to raise awareness about the value of financial planning and build trust to engage the public, said most advisors in the survey. “Although increased public awareness is expected to be one of the drivers of demand for financial planning, CFP professionals indicated there is significant work that needs to be done to promote the value of financial planning and the value of working with a financial planner,” the survey said.

Seventy-nine percent of the participants said a lack of awareness of the value of financial planning is the top reason people do not seek out financial planning services, and 46% said a lack of trust in financial advisors also holds people back.

Sixty-five percent of the respondents said it was important to continually improve their own skills in order to be successful. Advisors also need to embrace technology and use a more holistic business model, participants said.

“In support of this shift towards more collaborative client relationships, CFP professionals reported financial planners needed to learn more about behavioral finance [cited by 55% of respondents] and coaching [cited by 43%] to be successful in the future,” the study said.

Almost one-third of the CFP professionals reported being more involved with their clients in managing emotions during the Covid-19 pandemic, something happening as planning expands to include "softer" skills. At the same time, planning will still include collaborating with clients to set and achieve financial goals and provide objective advice to facilitate decision-making, the survey said.

The board will use the information from the survey to “future-proof” the financial planning profession and the CFP certification program, said Noel Maye, CEO of the board, in a statement.