MetLife research has found that the forthcoming General Election is creating uncertainty and disruption for adviser businesses and their clients.
33% of advisers say the 8 June vote and its aftermath are a major concern for their business over the next three months. This features ahead of concerns following the triggering of Article 50, cited by 27%, as the UK negotiates its departure from the European Union.
Clients are also feeling the strain with 28% of advisers saying election uncertainty is preventing clients from making decisions, the research – conducted as part of MetLife’s Quarterly Market Review being distributed to advisers – shows.
However, advisers believe the Conservatives offer the most compelling vision for improving pensions, savings and financial advice. 53% of those surveyed chose the Conservatives compared with 21% backing Labour.
However MetLife says they are likely to be disappointed on legislative changes – the key changes advisers would like to see are the abolition of the Lifetime Allowance on pension payouts and abolition of the Annual Allowance on contributions.
Around 34% of advisers want to see the Lifetime Allowance abolished while 31% want the Annual Allowance scrapped, the nationwide study shows. Around 11% want the so-called Triple Lock on State Pensions maintained.
Richard Evans, intermediary development manager at MetLife UK said: “Advisers may have hoped that political and economic uncertainty would have eased following the triggering of Article 50 but that was rapidly followed by the launch of a General Election.
“It is clear that the election is adding to the general uncertainty which is affecting long-term planning and complicating long-term decision making as clients react to the ups and downs of opinion polls and their impact on investment markets.
“Equity markets have remained robust but there is a growing concern that volatility will return, particularly as the EU exit negotiations start in earnest following the General Election result, whatever the outcome.”
