Looking ahead: Key moments for advisers to look out for in 2025

The gilt roll-off and potential cash reassessment?

On January 20th, a significant tranche of UK gilts will mature, prompting many investors to rethink cash strategies in their portfolios. With interest rates forecast to ease next year, some clients may consider shifting to higher-yielding fixed-term deposits or other cash products to protect returns. This presents an opportunity for advisers to revisit liquidity and security within evolving portfolios.?

Potentially more client interest in ISA season

In February, ISA season will be underway, and inflationary pressures and tax planning priorities could increase client interest. Many advisers will help clients secure competitive rates and maximise the value of their allowances while avoiding the late-season rush.?

National divorce day and financial restructuring?

With "National Divorce Day" (the first Monday of January) ahead of us, many advisers may see increased client queries about financial separation. From untangling joint accounts to redistributing wealth and rebuilding cash reserves, these transitions provide a chance to offer tailored support and solutions for clients in need of financial clarity.?

VAT on school fees: A new challenge?

Private school fees will incur a 20% VAT charge from the 1st of January, creating financial pressure for affected families. Clients funding education costs may need help reassessing their budgets or leaning on cash savings to offset these higher expenses. Strategic advice here will be critical in guiding clients through this adjustment.?

Gradual rise in inflation before expected moderation at the end of the year??

With inflation expected to rise in the first half of the year and then moderate at the end of the year, central banks could move towards rate cuts, supporting consumer spending. For advisers, the challenge will be managing client expectations of reduced actual returns on cash and identifying growth opportunities across relevant term accounts.

2025 is set to be a year of recalibration

With predictions that interest rates are set to ease and the tax landscape changing, the role of cash in client portfolios will be important for meeting diversification needs and liquidity as well as returns. Advisers who remain agile and continue reassessing strategies will be best positioned to deliver meaningful value.?

What could this mean for your clients?

Clients will count on your expertise to navigate these shifting conditions. Whether addressing cash as a flexible reserve, reallocating investments, or preparing for key life events, this is a prime opportunity to deepen client relationships through thoughtful, strategic advice.? ?

Wishing you and your clients a prosperous start to the new year!?

The Insignis Team? ?

Market information does not constitute financial advice. Forecasts may change and actual performance may vary. Please seek your own professional financial advice before making a decision.?

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