In this regular column for Financial Planning Today, new columnist Carly Dunningham, chair of the CISI's Financial Planning Forum, looks at the 'calming' role Financial Planners can play in clients' lives amid a seeming sea of chaos. You can read this article and more top content in the latest issue of Financial Planning Today magazine.
In an increasingly uncertain world, I believe as Financial Planners we can play a vital role in keeping clients calm and focused on long-term goals.
With global tensions rising and political shifts creating instability - such as Donald Trump’s influence on international affairs and fears of escalating conflict - many clients feel anxious about their financial security.
Closer to home, the UK government’s recent announcement that pensions may fall under inheritance tax (IHT) from 2027 has sparked concerns, leading some to consider drastic actions like large pension withdrawals to gift money now.
At times like these, our role as planners is more important than ever. Clients look to us for reassurance, guidance, and a steady hand. Rash decisions made in fear can have long-term consequences.
Premature pension withdrawals, for example, could lead to unnecessary tax liabilities, loss of compound growth and reduced retirement income. Making decisions based on short-term headlines rather than strategic Financial Planning can be costly.
Instead of reacting impulsively, clients should be encouraged to take a measured approach. Education is key - helping them understand that policy changes may take years to come into effect and could even be reversed by a future government.
By maintaining clear, open communication and reinforcing the principles of long-term planning, we can help clients make informed choices rather than emotional ones. Our job is not just about managing money - it’s about managing emotions and providing clarity in a world that often feels chaotic.
Now, more than ever, Financial Planners must be the voice of reason.
Carly Dunningham is a Chartered and Certified Financial Planner. She is the new Chair of the CISI Financial Planning Forum and a voice for the profession.
https://www.cisi.org
• This column first appeared in Financial Planning Today magazine, Mar-Apr 2025 edition. Carly's column appears in each issue of the magazine. You can subscribe to the magazine by registering for this website and then checking package options.
