Volatility and Brexit, the biggest threats to client wealth- Aegon report

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A survey by Aegon UK has found that 48% of financial advisers feel investment returns will rise over the next year , while the remaining 29% anticipate falls.

Those with positive views about investment returns base them on the stock market performances -whose returns are reaching those high records from last June- considering those performances may impact positively on client wealth. Conversely, the most cautious seem to be concerned about the stock market volatility, with a 36% pointing this as the factor most likely to have a significant impact on client wealth over the next two years.

Brexit was identified by 28% of advisers as the highest risk to the UK population’s financial security . In contrast, 13% see inflation as the greatest threat, while 12% feel that the frequent need of some British families having to support their parents or children seems to be their biggest concern when it comes to financial planning.

The survey also found that not preparing financial plannings with some advance proves to be the biggest issue for 74% of respondents. In addition, 65% of advisers think that ageing society is a huge threat to the UK population’s long-term financial security, while 39% consider that the greatest danger to people’s financial security is to rely on property prices as their major income provider.

Aegon’s head of pensions 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.”