Toby Larkman, Managing Director, Wealthtime

This quarter has been dominated by uncertainty.

We’ve had a new Prime Minister, a new Chancellor and a new City Minister. The Bank of England is wrestling with inflation again, and the FCA is revisiting aspects of Consumer Duty.

None of this is unusual in isolation. What feels different is the pace of change and speculation that surrounds it. Before policies are announced, markets try to anticipate them. Before reforms are confirmed, consumers and firms start adjusting their behaviour. Headlines move quickly, and expectations move even faster.

For advisers, that’s creating a difficult environment. Not because the principles of good financial planning have changed, but because helping clients navigate uncertainty requires more work, more conversations and more reassurance than ever.

In this quarter’s Deep Dive, I share my thoughts on what’s changed, what hasn’t, and why adviser guidance remains so valuable when confidence is in short supply.

New government, same Budget constraints

A change in government creates expectations. A Budget creates speculation. Currently, we’re seeing both.
A new Prime Minister, Chancellor and City Minister may have changed the faces around the Cabinet table, but the reality facing the government looks much the same: limited room for manoeuvre and some difficult decisions ahead of the Budget.

Recent years have shown how quickly speculation can influence behaviour. FCA data revealed significant increases in tax-free cash withdrawals¹ amid concerns over potential pension reforms that ultimately never materialised.²

For me, that’s the real challenge. Uncertainty doesn’t just create questions for advisers to answer. It can drive client decisions long before any policy changes occur.
The most valuable conversations right now aren’t about trying to predict the Budget. They’re about helping clients understand their options, avoid reacting to rumours and retain confidence that their plans can adapt to whatever changes eventually emerge.

Changes to Consumer Duty

The latest changes proposed by the FCA have prompted mixed reactions across the industry.

Many firms have spent the last few years embedding Consumer Duty into their businesses. Last year, requirements such as Board Consumer Duty Champions were removed. This year, we’re discussing further changes to responsibilities across the distribution chain. While simplification is welcome, constant adjustment inevitably creates uncertainty.

The industry doesn’t need another round of interpretation exercises. Firms want the space to focus on delivering good outcomes and great service for clients. The danger is that continual refinements, however well-intentioned, risk distracting attention from the very thing Consumer Duty was designed to achieve.

Ultimately, clients won’t judge Consumer Duty by governance papers or management information. They’ll judge it by the quality of support they receive and the outcomes they experience. That’s where our focus should remain.

Committing to better transfer experiences

For years, advisers have been telling the industry the same thing: transfers take longer than they should.

They’re right.

Transfers remain one of the biggest sources of frustration for advisers and clients, which is why we’re proud to have signed the Transfers Charter alongside 26 other platforms and leading technology providers.

What makes this initiative significant is that it’s focused on action rather than intention. With clear milestones, including eliminating paper documents and cheques wherever possible, the industry is collectively committing to create a faster, simpler and more transparent transfer experience.

At Wealthtime, we’re putting the Transfers Charter into action, making transfers quicker and easier by simplifying our processes and reducing administration for both advisers and clients.

No single firm can solve this alone, but genuine progress becomes possible when the industry works together.

Rates on hold, for now

Only a few months ago, the debate was centred on when rates would fall. Now the conversation is about how quickly they will rise again.

For advisers, that’s another reminder of how quickly the narrative can change. Forecasts evolve, expectations shift and clients naturally look for reassurance about what it means for their plans.

Higher rates can support cash and fixed income returns, but inflation continues to put pressure on spending power. The challenge is helping clients look beyond short-term noise and make decisions based on their long-term objectives.

The role advisers play is increasingly important during periods like this. When uncertainty dominates headlines, confidence and context become just as valuable as technical expertise.

Supporting retirement spending confidence

One of the most interesting things we’ve learned this quarter is that having enough money and feeling comfortable spending it are two very different things.

Our Permission to Spend research found that only 38% of retirees believe they’re spending the right amount, with the remainder either overspending, underspending or simply unsure. Even among advised retirees, almost half failed to sustainably increase spending after being told they could afford to do so.

The current backdrop makes this challenge even more relevant. When clients are surrounded by headlines about inflation, markets, tax changes and economic uncertainty, it’s hardly surprising that many become more cautious. Knowing you can afford to spend is one thing. Feeling confident enough to do it is something else entirely.

That’s why I believe Permission to Spend is such an important adviser opportunity. Financial planning isn’t only about helping clients build and preserve wealth. It’s about giving them the confidence to use that wealth to live the life they want.

That confidence becomes even more valuable during periods of market volatility. When markets fall, clients often need reassurance not only that their long-term plan remains intact, but that they can continue enjoying their retirement without fear that every setback requires a change in lifestyle.

I highly recommend joining our CPD-accredited Unlocking Client Confidence in Retirement webinar on 8 October, where we’ve partnered with Tony Wickenden from Technical Connection and Phil Wickenden from Ad Lucem to explore the gap between having a sustainable retirement income plan and having the confidence to spend it.

Looking ahead

The next few weeks should bring more clarity, with both the Labour Conference and October’s Budget providing a better indication of the government’s direction.

But clarity has been in short supply for much of this year, and that’s created challenges for advisers and clients alike.

The good news is that while policies, forecasts and headlines may change, the value of advice remains constant.

In uncertain times, clients need more than predictions. They need confidence. And helping them find it may be the most valuable thing advisers do.

Thank you, as always, for the trust you place in us. We look forward to supporting you and your clients through whatever comes next.

Toby

References

[1] Retirement income market data 2024/25 | FCA Full data tables, Table 18

[2] Policy rumours and Budget speculation prompt ‘surge’ in pension withdrawals | Pensions Age Magazine

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This article is intended for regulated financial advisers and investment professionals only. Wealthtime does not provide financial advice. This information is not intended as financial advice and should not be interpreted as such.

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