1 in 8 IFAs anticipate business downturn over the coming year

Financial advisers are pessimistic about the economic outlook for the next 12 months, according to a new survey from global research and insights agency Opinium.

Its research found that 12% of independent financial advisers (IFAs) anticipate their business will be in a worse state over the coming year, while a significant 38% expect a downturn in the broader economy.

The research highlights concern around future financial stability, with over one in ten (11%) IFAs predicting a decline in their own personal finances, and 15% foreseeing a worsening financial situation for their clients. 

Sole trader IFAs in particular exhibit the highest levels of pessimism, with 46% believing that the UK economy will get worse over the next 12 months. 

Alexa Nightingale, global head of financial services research at Opinium, commented: “While this week’s interest rate cut signals the UK has emerged from recent years of high inflation, global and national political events of this past year, paired with the current geopolitical environment, has created economic turbulence. 

"This is reflected by IFAs’ views of the economic outlook, and a considerable portion of financial advisers are bracing for challenging times ahead. Many advisers anticipate a different year for their own businesses, as well as for their clients, which is a clear indication of the broader economic landscape at present, and emphasises the need for resilience and proactive financial planning in the year ahead.”