One in five people regret the financial decisions they took as a result of Budget speculation, new research from St James’s Place has shown.
Almost a quarter (23%) of adults took financial action in response to the Pre-Budget rumour mill, with 20% of those now regretting at least one of the actions they took.
Amongst those who took action, the most common response was to adjust investment portfolios, with 48% altering how their money was invested. These changes ranged from withdrawing money into cash or delaying new investments to reallocating funds into perceived safe-haven assets such as gold or premium bonds and in some cases, riskier options such as cryptocurrencies.
A third (34%) of those who acted changed their savings habits, while a similar number (30%) altered their pension arrangements in anticipation of potential reforms.
Around one in five (21%) made adjustments to their ISAs and 12% gifted money to children or grandchildren during the period.
However, 19% of those who made changes to their pensions said they wished they had waited, while 15% of those who adjusted their portfolios ahead of the Budget also regretted doing so and 10% who modified their ISA arrangements felt they had acted too soon.
Claire Trott, head of advice at St. James’s Place, said: “In the lead up to the Autumn Budget, months of speculation created a sense of urgency for many people, prompting individuals to take action before any policies were confirmed – and our latest research shows that some now regret doing so.
“Pension changes, especially those connected to the tax-free lump sum, can be irreversible, and acting prematurely can be detrimental for those who had made plans over the longer term.
“That is why reducing unnecessary speculation around fiscal events is so important. When the public is confronted with repeated ‘what ifs’, people feel pressure to move their money in ways that may not align with their long-term interests. Greater clarity and stability around tax and pension policy would go a long way in helping individuals make informed choices.”
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