Almost half (48%) of UK financial advisers expect their clients’ investment returns to continue to increase over the next 12 months, according to a report.
Aegon’s first Adviser Attitudes report, published this week, found that less than a third (29%) of advisers surveyed expect a fall in returns.
But the report concluded that “a number of macro-economic warning lights are now flashing on the dashboard for the adviser community”.
The report reveals that advisers now rank stock market volatility as the biggest threat to client wealth in the short term, with a third (36%) identifying it as the factor that will have the most significant impact over the next two years.
The UK’s exit from the EU also remains an acute issue, with more than a quarter (28%) of advisers concerned that Brexit risk will impact client wealth above all else.
It also found that leaving financial planning too late remains the biggest threat to future financial security.
Steven Cameron, pensions director at Aegon, said: “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.”
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