Four in five advised clients (81%) are anxious around potential changes in the upcoming Budget, according to a new report.

Rampant speculation about possible tax changes and reduced pension allowances in the lead up to the 26 November Budget has created unnecessary panic, according to four in five advisers.

A fifth (16%) of advisers surveyed by Royal London felt that the panic was potentially damaging, with the same number having seen some clients already taking action which could materially affect their longer-term plans.

However, despite concerns, many advisers had not taken action to reassure clients.

Just two in five advisers were proactively urging clients to keep focused on their financial goals, in comparison to a third (30%) who were only responding to client concerns when asked.

A fifth (16%) of advisers had taken a personalised approach, reaching out to directly reassure clients of the robustness of their plans.

Just one in ten (9%) were monitoring the situation ahead of the Budget in order to make pre-emptive adjustments to clients’ plans where appropriate.

Jamie Jenkins, director of policy at Royal London, said: “The research highlights the variety of responses from advisers with some proactively reassuring clients, others only responding when approached, and a minority considering making pre-emptive adjustments to financial plans.

“While the majority see only a limited rise in client concern, it’s telling that speculation this year is prompting real distress among some clients with some potentially taking harmful actions ahead of any announcement.”

Langcat surveyed 1300 advisers on behalf of Royal London in September and October.