As speculation around the Autumn Budget gathers pace, more than four fifths (81%) of advisers report heightened levels of anxiety among clients, according to Royal London.
However, advisers continue to prioritise long-term planning rather than react to short-term noise.
Two-fifths (40%) of advisers are proactively urging clients to keep focused on their established financial goals, while 30% are confident enough to ignore the noise and respond to client concerns only when asked.
Just one in 6 (16%) are taking a more personalised approach, reaching out directly to reassure clients of the robustness of their plans and 9% are monitoring the situation and may make pre-emptive adjustments to clients’ financial plans where appropriate.
The vast majority (81%) of advisers also agree that the level and depth of changes being touted this year is creating unnecessary panic, noting that the uncertainty is prompting a noticeable increase in clients reaching out to them.
A further 16% of advisers felt that it was not only unhelpful but potentially damaging, stating that some clients have already taken actions which could materially affect their longer-term plans.
Jamie Jenkins, director of policy at Royal London, said: “It’s clear that when it comes to financial advice, managing client anxiety comes with the territory and is a key element of the value delivered by advisers. It also underlines the value advisers bring by guiding clients through uncertainty, reinforcing the value of steady, long-term planning.
“The research highlights the variety of responses from advisers with some proactively reassuring clients, others only responding when approached, and a minority considering making pre-emptive adjustments to financial plans. While the majority see only a limited rise in client concern, it’s telling that speculation this year is prompting real distress among some clients with some potentially taking harmful actions ahead of any announcement.”
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