Triggering of Article 50 'increases drawdown risks', warn advisers

It found that investment market uncertainty during the two-year Brexit process, now underway following the formal triggering of Article 50, is a major concern for 74% of advisers - equal to worries about clients underestimating longevity.

The potential implications of Brexit on investment returns from all asset classes is seen as the biggest challenge for investment planning.

Around 74% of advisers identified Brexit issues as the biggest challenge, ahead of 58% who focused on volatility and 50% who are worried about the market impact of elections in France and Germany this year.

However the MetLife research shows advisers believe Brexit will be good for their businesses – 67% of those questioned expect demand for Brexit-related advice will increase this year.

Richard Evans, Intermediary Development Manager at MetLife UK, said: “Equity markets have been buoyant since the EU Referendum result with the FTSE-100 up more than 16% since June 23rd.

“However the formal triggering of Article 50 means the Brexit process is now real with the clock ticking on the UK’s departure from the European Union which potentially heightens sensitivity to the twists and turns of negotiations.

“Advisers are clearly concerned that clients in traditional drawdown are exposed to volatility and uncertainty and believe Brexit is as much of a risk as longevity. The market boom since the Referendum has benefited clients but it may now be time to look at guaranteed solutions as a way to protect those gains.”