Economic Unrest Spurs Increased Reliance on Financial Advisers

In the face of ongoing economic turmoil encompassing inflation, market volatility, and other financial stresses, a global survey from Natixis Investment Managers, conducted by CoreData Research, has highlighted a growing trend: investors are increasingly relying on their financial advisers.

With 91 per cent of surveyed investors expressing trust in their financial advisers for investment decisions, this highlights an unmistakable shift amidst financial uncertainty.

The survey, which gathered responses from over 7,000 individuals worldwide, revealed that nearly three-quarters (73 per cent) of investors would prioritise safety over potential performance in their investment strategies, underscoring a widespread apprehension toward financial risk in the current climate.

Aside from market volatility, maintaining financial progress remains a critical concern for investors. The survey noted that 34 per cent of investors ranked tax liabilities high among their financial worries, a sentiment that advisors are keenly addressing. In fact, 74 per cent of advised investors globally view managing tax liability as central to their financial planning efforts. The timing aligns with heightened media coverage on taxation and the proximity of the financial year’s end, particularly within Australia.

Furthermore, the escalating cost of living has raised flags for investors, with two-thirds (66 per cent) of respondents indicating reduced savings due to increasing daily expenses. Meanwhile, inflation has noticeably affected the financial gains of about 59 per cent of investors, reducing their capital's value over time.

Notably, the survey carries insights into evolving expectations between clients and advisers concerning investment returns. Investors are now projecting an optimistic 7.3 per cent return above inflation for 2025, a drop from the previous year's 10.9 per cent. While clients remain "cautiously optimistic" about achieving long-term returns of 10.7 per cent above inflation, advisers suggest a more realistic target of 8.3 per cent.

These adjustments demonstrate a narrowing of expectations between advisers and investors, with the expectation gap tightening from 42 per cent in 2023 to 28 per cent in 2025. This alignment suggests a more harmonized understanding of realistic financial outcomes amid ongoing economic challenges.

Darren Pilbeam, Head of UK Sales at Natixis Investment Managers, commented on the findings, pointing out the profound impact of geopolitical instability, rising inflation, and increased costs on investor behaviour. He noted that as markets continue to grow in complexity, investors are increasingly seeking assurance from their advisers to navigate the financial landscape effectively.

Published:Friday, 20th Jun 2025
Source: Paige Estritori

Share this news item:

Finance News

US Involvement in Israel-Iran Conflict Sparks Financial Market Concerns

23 Jun 2025: Paige Estritori

The escalating likelihood of the United States engaging militarily in the Israel-Iran conflict has raised alarm among investors, potentially leading to significant market volatility. This concern was highlighted by the global financial advisory firm, deVere Group, as tensions heighten in the Middle East. - read more

Global Markets Brace for Oil Price Surge Following US Strike on Iran

23 Jun 2025: Paige Estritori

The recent US military attack on Iranian nuclear facilities has raised expectations of a significant oil price spike as global markets prepare to resume trading. Announced by former President Donald Trump, the attack marks an increased US involvement in the Middle East, which analysts believe could lead to heightened volatility across financial markets. - read more

Business Loans Articles

Creative Financing Solutions for Aussie Businesses to Boost Working Capital

Working capital is the lifeblood of any business, serving as the catalyst for sustainability and growth. For Australian businesses, maintaining a healthy level of working capital ensures that operations run smoothly and expansion opportunities can be seized without delay. The ability to meet short-term liabilities, invest in product development, and respond to market demands hinges on this critical financial metric. - read more

10 Creative Ways to Fund Your Small Business Startup

Starting a small business can be both exciting and challenging. One of the hurdles that many entrepreneurs face is securing the necessary funds to get their venture off the ground. Finding the right financial solutions can make the difference between success and failure. - read more

Investing in Growth: How to Finance Your Business Expansion Strategically

Australia's dynamic SME landscape is ever-evolving, constantly presenting new opportunities and challenges for today's entrepreneurs. Growth is not just a goal but a necessity for these small and medium enterprises to thrive in the competitive market. As these businesses stand on the cusp of expansion, it becomes critical to recognize the indicators for growth and to approach this next stage with a robust strategic plan. - read more

The Essential Guide to Fast-Tracking Your Small Business Loan Approval

In the fast-paced world of business, securing funding swiftly can be the difference between seizing an opportunity and watching it slip away. For small businesses, the urgency of quick loan approvals is often more pronounced. Each day spent waiting for approval could translate to lost revenue, hindered growth, or the inability to meet operational demands. - read more

Need Help Finding a Loan?

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase

Personal Loan:
A personal loan is a loan provided to an individual or individuals (as opposed to a business) and that can be generally be used for a variety of purposes subject to the approval of the lender.