Most financial advisers, paraplanners, and business owners feel optimistic about the coming months for their business, despite concerns about external factors like the economic recovery and cost of living issues, according to Standard Life.
Nearly 89 per cent of advisers are positive about their business in the upcoming year, including 14 per cent who are very optimistic, and only 11 per cent feel pessimistic.
But, according to Standard Life’s survey of 600 financial advisers, there are concerns about external factors that may have a greater impact in the next year, with 44 per cent feeling pessimistic about economic recovery and investment returns, and 70 per cent being downbeat about cost-of-living issues.
Advisers cite market volatility as their main challenge, with 62 per cent contending with it. Other significant challenges include servicing existing clients at 36 per cent, consumer duty at 35 per cent, business costs at 33 per cent, compliance at 33 per cent, and living expenses at 32 per cent.
Standard Life retail advised managing director Chris Hudson says: “The economic environment has been particularly turbulent in the last year, and advisers have had to contend with and support their clients through unforeseen circumstances. While these and other challenges are likely to persist for some time, the fact that they are feeling optimistic demonstrates their resolve and the sector’s resilience in the face of uncertainty.
“Furthermore, significant industry developments like Consumer Duty are approaching which will put further strain on advice businesses. But such developments, along with recent changes to pension taxation and allowances in the Spring budget, create business opportunities to engage clients in value-adding conversations.
“It’ll be a busy year for advisers, but with consumers facing a difficult financial climate and pressures on their ability to save, it’s more important than ever that they can rely on expert advice to help navigate this period.”