Advisers are reporting heightened anxiety amongst their clients in the build up to the Budget in November, with some clients taking irreversible action in response to speculation, research from Royal London has revealed.

Its annual Meaning of Value research, conducted in partnership with The Lang Cat, noted that many clients were seeking greater reassurance on what action to take ahead of the Budget.

Over eight in 10 (81 per cent) advisers said the relentless speculation about potential Budget announcements was creating unnecessary panic, resulting in a notable increase in clients reaching out to them.

A further 16 per cent of advisers reported that some clients had already taken actions that could materially affect their long-term plans.

Many advisers were found to be prioritising long-term planning rather than reacting to short-term noise, although a ‘considerable’ proportion warned that ongoing speculation was causing client anxiety, with some taking irreversible actions as a result.

Adviser firms were taking differing approaches to reassure clients, with 40 per cent proactively urging clients to keep focused on their established financial goals, while 30 per cent were only responding to client concerns when asked.

Around one in seven (16 per cent) advisers were reaching out directly to reassure clients of the robustness of their plans, and 9 per cent were monitoring the situation and may make pre-emptive adjustments to clients’ financial plans where appropriate.

“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,” commented Royal London director of policy, Jamie Jenkins.

“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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