Two thirds (67%) of advisers surveyed by NextWealth listed these drivers as the most prevalent factors behind increasing demand.

The challenging economic environment was also a factor spurring demand for advice, with 58% of advisers surveyed saying it was increasing demand for their services.

Current pensions and tax rules and allowances, including the abolition of the Lifetime Allowance and increases in annual allowance rules, were also cited as driving demand by 49% of advisers.

The list of factors suppressing demand was topped by the affordability of retirement advice, with 19% of the adviser surveyed citing it.

Negative publicity over retirement advice was also cited as a suppressor of demand by 17% of advisers.

Steven Cameron, pensions director at Aegon, who sponsored the report, said: “Affordability remains a barrier to retirement advice, with a growing “advice gap”. The FCA and Treasury are currently consulting on the Advice Guidance Boundary Review, offering an opportunity to explore simplified advice solutions and targeted support for those currently priced out of receiving help.

"Advisers are also aware that negative headlines and regulatory change such the FCA Consumer Duty could depress demand. While the Consumer Duty may be adding new considerations to the provision of advice, we hope that longer term it will further improve confidence among consumers that the advice they are receiving is of consistently good value.”

The FCA is proposing to open the door to millions of consumers receiving ‘financial guidance’ on their personal finances which stops short of regulated financial advice.

The regulator says its new proposals will give many more people the ability to receive 'simplified advice' on their investments and pensions.

Guidance providers will be able to give savers tips and ideas on how to invest their money but must not provide personalised advice.

The FCA said its proposals to relax the strict boundary between advice and guidance would provide "greater support" for people's financial decisions.

Heather Hopkins, managing director of NextWealth added that the report demonstrates that retirement advice, “remains a cornerstone of Financial Planning”.

• NextWealth surveyed 220 financial advisers in November and December 2023.