What do clients fear with a change of government?

Clients have been increasingly asking advisers about the impact a potential change of government could have on their finances, a survey by Royal London has found.

In the last two years, nine in ten pension advisers said clients have approached them to discuss the topic.

The biggest areas of concerns include estate planning and inheritance (64 per cent), potential changes to tax relief on pensions (65 per cent) and potential changes to income tax (57 per cent), according to the survey.

The poll found that a quarter (26 per cent) of advisers said their clients were raising this “often” with 10 per cent of advisers stating the topic comes up “all the time”.

High net worth advised fear a Corbyn-led government

The most common response to concerns over a potential change of government among advisers were: “take a long term view” (21 per cent), “wait until change has happened / base your financial plans on current legislation” (16 per cent), “don’t panic” (15 per cent), “diversify” (13 per cent) and “review your tax allowance (8 per cent)”.

Royal London personal finance specialist Becky O’Connor says: “Politicians are using big financial topics such as inheritance and pensions tax relief as policy footballs, so worried investors are wise to seek views from their advisers on whether this will affect their plans.

“With so much political uncertainty, the difficulty for advisers is knowing what to say. For the moment, ‘Keep calm and carry on’, is the most common line of defence.”



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