Instead of reacting to short-term events and market movements, your Financial Plan should set the course for the future and be viewed as a strategic plan.
The onset of the Covid-19 pandemic has undoubtedly influenced the economy and markets, but this is not a good reason for changing the direction of your Financial Plan.
New research has found that four out of 10 financial advisers say their clients did not have to adapt or change their Financial Plans due to Covid-19.
The social media survey of Personal Finance Society members in September found that only 5% of advisers had a client who struggled financially due to the economic impact of Covid-19.
Around a quarter of those advisers polled said their clients have cut back on their spending and saving due to concerns about the impact of the pandemic. 29% of advisers said their clients were saving more cash during the lockdown.
Keith Richards, chief executive of the Personal Finance Society, said:
“The fact four out of 10 advisers have yet to see the need to adapt or change client plans is testament to the value and importance of professional support.
“We still find ourselves very much in the midst of this pandemic, with more financial impacts to come for many individuals. This month spells the end of the government’s furlough scheme, which has already resulted in businesses consulting on redundancies and some will struggle to survive until Christmas.
“While we welcomed the Chancellor’ Winter package and the measures to protect viable jobs, many economists agree they have not come soon enough, nor do they go far enough to protect the many millions who will be hurting now. Unfortunately, this means we can only expect personal finances to be hit harder and for unemployment to continue to increase.
“The value of professional financial advice could not be overestimated during this period, nor in the months ahead. The financial situation of many could be bleak in the months to come and we have already alerted the FCA and The Pensions Regulator to a spike in requests for pension transfer advice.
“We have also urged members to remain vigilant and continue to reach out to clients to ensure they are swiftly updated on any change in financial circumstances so they can help them throughout this crisis.”
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