Poll: Are you feeling positive about 2024?

Most would agree that 2023 was a rocky year.

As Money Marketing editor Tom Browne wrote in his Christmas message: “2023 is politely described as ‘tough’ by most [advisers], and I can easily see why.”

The long-awaited introduction of Consumer Duty in July, although broadly welcomed by advisers, has shaken up the sector and forced many firms to make burdensome and costly changes, which will reverberate well into the new year, he suggests.

The ‘advice gap’, meanwhile, continues to grow, with 50% of advisers planning to retire in the next five years, while fiscal drag creates ever more demand for their services.

All of this has played out against a stagnant economic backdrop, with sluggish productivity, interest rates at 5.25% and inflation (while not as high as it was 12 months ago) significantly impacting the cost of living.

A Christmas message from the Money Marketing team

A New Year is a time for reflection, but also prediction. As always, there have been many forecasts about what might happen in the year ahead – especially in terms of the economy.

“The outlook for 2024 is tentatively more optimistic,” says Nutmeg chief investment officer James McManus.

He says it is clear that higher interest rates have been a “drag on growth”, but believes interest rates are near or have likely “passed their peak”.

“Hopefully, inflation will continue to fall in 2024 and central bankers will start to consider rate cuts,” he adds.

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