One in five (19%) independent financial advisers (IFAs) are anticipating an increase in their clients moving money from investments to cash savings, new research by Opinium has shown.

This is due to increased volatility within the market, with levels of uncertainty running high across the global economy.

Opinium’s latest IFA Barometer, based on a survey of 200 UK IFAs, found that four in five (81%) expect investments to be more volatile in the next 12 months compared to the last.

Of those who predict this rise, 44% are expecting investments to be much more volatile, compared to just 4% of IFAs who expect the market to be less volatile.

The data comes as the global economy has been hit by trade tariffs set by the US – with three in four (73%) IFAs noting concern about geopolitical environment. This was the top concern for IFAs when considering what will impact investments.

Opinium suggested the movement of money from investments to cash savings may be indicative of a wider shift away from risk as uncertainty in the market increases. Should investments become more volatile, around half (48%) of IFAs said they would take a longer-term approach to investment, while a third (34%) said the total amount invested would decrease.

Global head of financial services research at Opinium, Alexa Nightingale, commented: “Due to the current instability seen in the global market, many IFAs foresee their clients moving money away from investments towards cash savings to protect their portfolios.

“This shift would highlight a growing caution, as people rethink their willingness to take risks in light of concerns like geopolitical tension, inflation and fluctuating interest rates.

“While cash savings can provide safety and easy access to funds, they often offer lower returns, so IFAs will need to advise their clients on finding a balance between security and the chance for growth in today’s changing market.”

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