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Warning lights flashing on the dashboard for the adviser community

Although projections are generally seen as positive, there a number of macro-economic warning lights that are now flashing on the dashboard for the adviser community.

So says the Aegon’s Adviser Attitudes Report, which concludes that as the stock market approaches a return to the record highs of June this year, just under half of UK financial advisers anticipate a continued increase in their clients’ investments over the next 12 months, a significantly higher proportion than the 29% that expect a fall in returns.

However, while advisers are optimistic about the positive prospects this brings for client wealth, Stock market volatility and Brexit are now seen as the biggest threats to client wealth over next two years, alongside leaving financial planning too late, which remains the biggest threat to future financial security.

Pensions Director at Aegon Steven Cameron said: “Strong growth in the stock market following the Brexit referendum has resulted in a buoyant period for financial returns, and it’s encouraging that much of the financial advice community expects this to continue. However, with so much going on in the political and economic landscape, it’s impossible to know for certain what’s waiting round the corner.

“UK growth forecasts have been revised down, and clients are facing a range of new, and perhaps more present, threats to their wealth. With inflation rising above expectation and interest rates likely to follow suit, savers need support to make the right decisions. By providing tailored advice depending on the individual circumstances and life stage of their clients, advisers’ services can provide huge value. With so many unknowns, people should take the necessary steps to strengthen their finances, and advisers have a critical role to play in helping them make informed decisions to manage their money successfully.”