Crisis management: Financial planning in a pandemic

In a guest feature this week, Nick Toubin, Senior Client Director at Strabens Hall, explains that while long-term financial planning should always be a priority, staying on top of savings and investment goals is even more important than usual in times of uncertainty – and the current coronavirus pandemic certainly qualifies on that score…  

Putting assets into savings and waiting for income and profits to be generated, isn't good enough, according to Toubkin, who advocates a proactive approach including regular reviews with a financial adviser.

"The recent pandemic is a stern reminder that times can change fast and markets can respond viciously to crises," writes Toubkin. "It is important, then, for those with long-term retirement plans to sit down with their advisers to update, review and discuss their personal retirement strategy to effectively  ensure that they weather the storm and receive the income they desire in later life."

Quilter meanwhile, has launched a campaign to raise awareness among Baby Boomers of their ability to use annual gifting allowances to pass on wealth, tax free, to family members. Throughout the autumn the firm will be offering a series of virtual events, analysis and support to advisers and clients to promote intergenerational financial planning conversations.

We also report on new research from Canada Life which reveals that three in five (59 per cent) of UK adults, which equates to 31 million people, have not written a will. 

Of those who are currently intestate, 22 per cent are over the age of 75 and 39 per cent are aged 65-74. Worryingly, a third (32 per cent) of those aged 75-plus say the haven’t even started thinking about writing a will yet. 

"While no one likes to think about their own mortality, getting your house in order by having the right legal instructions can take away much of the emotional and financial pressure at a very difficult time," says Neil Jones, tax and estate planning specialist, Canada Life.

PIMFA, the trade association for the wealth management and financial advice industry, meanwhile, has welcomed a move by the FCA to put its house in order, with a new report into the 'regulatory perimeter', but says there is still work to be done.

“This report identifies issues but is very light in the way of action - a responsibility which ultimately sits with Government," says Tim Fassam, Director of Government Relations and Policy at PIMFA. 

And finally, a new report by Lloyds Bank reveals that the vast majority (89 per cent) of UK wealth and asset managers plan to maintain flexible working patterns for employees first introduced in response to the Covid-19 pandemic. Almost as many (85 per cent) are also expecting to expect to carry on using digital platforms like Microsoft Teams and Zoom to liaise with clients, while almost two-thirds (62 per cent) will use new technology to automate more work.

Wealth Adviser
 

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