Geopolitics and volatility top concern for advisers

Geopolitics and market volatility are the top concerns for advisers in 2025, according to latest research from Scottish Widows.

In the face of a volatile UK equities market, the research shows advisers start the year more bearish, with only 64% expecting equities to rise in the next 12 months.

This is down from 77% the previous year. Meanwhile, nearly half of surveyed advisers cited geopolitics as the biggest risk to equities.

By contrast, investors are more worried about inflation, with one-third citing it as their biggest concern.

The Scottish Widows’ Investment Confidence Barometer consistently finds advised clients more confident than non-advised when it comes to navigating risk, volatility and inflation.

Advisers are much more confident about equities than investors over long-term horizons.

Over five years, the vast majority (89%) of advisers expect markets to rise compared to just 63% of advised consumers and 57% of non-advised consumers.

Similarly, over ten years, 91% of advisers expect markets to rise versus 68% of advised and 57% of non-advised consumers.

The fact that advised consumers are more bullish than non-advised investors, over all time periods, underlines the value of advice and the behavioural coaching that advisers provide.

Value of advice

The study found the value of advice is on the rise post-Consumer Duty. More than four in five people who have a financial adviser believe it represents ‘value for money’ – an increase of 10% from 2023.

The study also found that advisers and clients agree that accessibility is paramount. Nine in ten advisers surveyed believe that being contactable is important, with almost all (96%) surveyed advised clients agreeing with them.

Meanwhile, 96% of advised clients consider portfolio performance a top priority – this indicates that accessibility and performance rank equal in the minds of advised clients.

Additionally, both advisers and investors agree that specific tools such as cash flow modelling are important in demonstrating the value of advice, with younger advisers (88%) particularly positive about their benefits.

Clients are even more enthusiastic, with 82% of surveyed advised clients citing them as important.

Ross Easton, Scottish Widows Platform, head of platform proposition, said: “This survey emphasises the difference that advisers make for their clients, especially when it comes to guiding them through times of market volatility.

“Our Barometer has consistently found that advised clients are more confident than non-advised investors, setting them up to benefit from market corrections and recoveries when others are more cautious.

“It’s also clear from our research that advisers believe that having cutting-edge tools helps them to showcase the value of advice to their clients via coaching on stock-market trends and scenarios.”