Financial advisers view Brexit and the current political uncertainty as only secondary risks to people’s long-term financial security.
Despite the political and news agenda being dominated by Brexit issues, only 6 per cent of advisers surveyed said this was the biggest risk to individual finances.
The survey, carried out by Aegon, found that half of advisers (52 per cent) cited a lack of long-term planning as the biggest threat.
This comes as figures released earlier this year by the Government’s Actuary Department found that households are saving the lowest proportion of their income in over 60 years.
Other long-term issues were identified as the second and third biggest risks.
A total of 20 per cent of advisers thought our ageing society and increased life expectancy were the greatest threat. A further 7 per cent cited the risk of government cutting state pension payment as as the biggest risk, while 6 per cent expressed similar concerns about the future funding of social care.
Aegon pensions director Steven Cameron says: “Brexit and political uncertainty seem to be dominant concerns at the moment.
“While their impact over the next couple of years is hard to predict, it’s actually another long term issue that is worrying financial advisers more — and that’s whether people are starting early enough with planning their finances for the long-term.”
He adds: “Today’s younger generations face greater financial challenges than previous generations, whether from student debt or getting on the housing ladder.
“So it’s not surprising that financial advisers see the biggest threat to the UK population’s long-term financial security as leaving it too late to start planning your finances.
“To someone in their 20s, retiring in their 70s will be far down the priority list. But making a start, including making the most of workplace auto-enrolment pension schemes, can make a big difference longer term. We can’t afford to let Brexit uncertainty be seen as a further reason to delay.”
