Why you should have regular reviews with your financial adviser

  • Shunil Roy-Chaudhuri
  • 19 May 2023
  • 5 mins reading time

Change happens. The unexpected happens…

In March 2020, the Covid-19 pandemic drove the world into lockdown. Global equities (shares) fell sharply, only to rebound even more strongly towards the end of the year. This led to big swings in the value of the investments many of us hold.

In the March 2023 Budget, chancellor Jeremy Hunt unexpectedly scrapped the £1,073,100 lifetime tax allowance for pensions, removing the limits on this allowance. He also increased the annual pensions tax allowance from £40,000 to £60,000. These changes could significantly impact the retirement plans of many of us.

Life-changing events

Such surprise events can alter our financial plans. But changes in our personal lives can also impact these plans. A new child or grandchild may have entered our lives; we might be lucky enough to secure a new job or have the misfortune to face redundancy; we could tragically go through the death of a spouse; we may come into an inheritance or receive a windfall; we may need to arrange long-term care for ourselves or our loved ones.

Financial advisers have a firm grasp of market developments and of the tax regime, and they understand how changed personal circumstances could impact our financial plans. Advisers handle these issues on a day-to-day basis and they constantly monitor developments. Moreover, they can throw light upon more complex investments and options. And they can help you grasp the potential outcomes of financial decisions. For these reasons alone we believe it is vital for people concerned about their financial wellbeing to hold regular reviews with financial advisers.

Lifting the burden

But there are other reasons as well. Taking regular advice reviews means you don’t have to try to work out the financial planning impact of market and political changes. And it means you don’t have to try to figure out the financial impact of changes in your personal life. Seeing an adviser on a regular basis lifts these burdens from your shoulders. But it also limits the chances of making financial planning choices that might not be the best ones open to you.

Moreover, advisers can support you in times of market uncertainty and guard you from the kneejerk reactions to stock market declines that people can sometimes make. They can help produce a personal budget that aims to help you adhere to your financial plans and therefore hit your financial goals, as well as give you more confidence in the long-term financial wellbeing of yourself and your loved ones.

There is no hard and fast rule about how often you should see an adviser. But, at Schroders Personal Wealth, one of our key principles is that people should have regular advice reviews, which for us means at least once a year. However, during periods of significant change in your personal life, you may benefit from seeing an adviser more often. Furthermore, if you own investments and personal assets of significant value, then these may call for more frequent monitoring and you may benefit from more regular financial reviews.

Important information

Fees and charges apply at SPW.

The value of investments and the income from them can fall as well as rise and is not guaranteed, and you might not get back your initial investment.

Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

The retirement benefits you receive from your pension plan depend on a number of factors, including the value of your plan when you decide to take your benefits, which isn’t guaranteed and can go down as well as up. The benefits of your plan could fall below the amount(s) paid in.

Any views expressed are our in-house views as at the time of publishing.

This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or in part) without our prior written consent.

In preparing this article we may have used third party sources which we believe to be true and accurate as at the date of writing. However, we can give no assurances or warranty regarding the accuracy, currency or applicability of any of the content in relation to specific situations and particular circumstances.

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