Financial advisers in the UK are optimistic about the positive prospects for client wealth, with nearly half (48%) of advisers expecting investment returns to rise over the next year and 29% expecting returns to fall, according to Aegon’s Adviser Attitudes Report.
The study found that stock market volatility to be the biggest threat to client wealth in the short term, with 36% of advisers expecting the factor to have the most significant impact over the next two years.
Brexit was believed to be the biggest risk to client wealth by 28% of advisers, 13% believed inflation as the biggest threat, while 12% said that pressure to support parents and/or children was of concern when it comes to financial planning.
Around three quarters of advisers (74%) also viewed not starting financial planning early enough as the biggest risk to UK’s long-term financial security. Also, 65% of advisers believed ageing society as the biggest long-term threat to financial security, while 39% were concerned about reliance on property prices to provide an income.
Aegon pensions director 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.”