Advisers must prepare for a decade of historic change as geopolitical pressure, shifting demographics and the rewiring of global power structures reshape the financial landscape.
This is what Defaqto global economist Graeme Leach said at its conference today (27 November).
Leach explained that the 2020s are “already proving to be a geopolitical and economic turning point, but the disruption seen so far is only the beginning”.
Due to artificial intelligence, industrial realignment, supply chain restructuring and intense global competition accelerating, he warned that “the next decade will be the most defining of the 21st century”, carrying profound implications for advice firms and their clients.
Defaqto CEO John Milliken also highlighted that firms are navigating simultaneous pressures such as rising regulatory expectations, shifting consumer behaviour and wider economic uncertainty that continues to shape investment decisions.
Still, he pointed to the resilience of advisers and the critical role they play in guiding clients through a fast-changing market.
Leach said the forces driving global instability range from intensifying political polarisation to structural workforce shortages and the long-term consequences of climate transition.
He believes advisers should expect “continued economic divergence between regions, higher baseline levels of inflation than seen in the 2010s and increasing intervention by governments responding to geopolitical competition”.
He added that those who embrace technology increase their productivity and adapt their business models will be the best positioned to thrive.
Still, there was some optimism. Leach said the UK has “significant strengths it can leverage”, such as innovation, a strong services sector and the ability of businesses to adapt quickly.
For advisers, this decade will reward those who remain “agile, deepen client communication, and anchor recommendations in long-term planning rather than short-term noise”.
