45% of high-net-worth individuals reviewed their wealth planning this year – should you?

There’s never a bad time to get your personal finances in order – but the election has given many the kick that they needed. New research from Rathbones reveals close to half of high-net-worth individuals (45%) have reviewed their wealth planning in the past year, with 20% saying it was the general election that prompted their change in plans. When asked what changes they had made, 12% said they had brought forward gifting plans while a further 16% said they had changed the nature of their planned financial gifts .

This suggests taxpayers are concerned about being hit by changes to inheritance tax (IHT) rules – however it is important to point out that Labour has not currently announced any plans to hike IHT rates or reduce the nil-rate band. As well as the election, today’s shifting macroeconomic backdrop is also front of mind for the individuals surveyed by Rathbones. Twenty-five percent said they had reviewed their financial plans due to interest rates remaining high .



Another 17% reported changing their investment strategy in the past 12 months. Interest rate cuts are expected at some point this year, with some economists betting on a change in policy when the Bank of England next meets on 1 August . When interest rates are cut, we could see a change in how different asset classes perform.

Equities tend to do well in a falling interest rate environment , as rate cuts typically boost the economy and earnings. Meanwhile, the amount of income you can earn in the bond.