Almost half of farmers plan to seek financial advice over the next six months amid concerns around their pension savings, new research from NFU Mutual has found.
The rural insurer surveyed 331 farming and non-farming customers about their confidence in saving and investment as part of its investor-sentiment study.
It found that 62% of all customers said that their attitude towards savings and investing had been impacted by international tensions, up from 36% who cited it as a factor in November.
More than a third (36%) of customers said they plan to seek financial advice in the next six months, with 48% of farmers saying they planned to do this.
According to NFU Mutual, farmers’ concerns about their finances are most likely to be centred around their pension savings.
It follows the announcement of changes to inheritance tax and unspent pension wealth in last year’s Autumn Budget. The insurer said many farming families use pensions as a way of passing on wealth to children who do not want to work in farming.
The study found that inheritance tax reforms continue to be a concern, with some customers deciding to spend their savings to avoid the tax while others plan to maximise their cash ISA allowances in case of future government changes.
It also showed that confidence amongst farmers was lower than that of non-farmers. Nearly half (44%) of farmers said they were more likely not to have made any additional payments into their savings and investments in the last three months. Many said they were more focussed on making additional loan repayments.
However, the proportion of customers who said they were concerned about their finances over the next five years has dropped to 49% compared to 57% in November 2024.
David Nottingham, personal finance expert at NFU Mutual, said: “The latest study shows a continued increase in short-term financial concerns amongst rural customers due to international tensions. This explains why we are seeing an increased appetite for specialist advice as rural customers seek to navigate the uncertainty and secure their financial future.
“Inheritance tax is a particular concern for older participants and many are worried about the impact on their pensions and finances.
“Customers remain cautious given international tensions and the continued cost of living pressures but there are some bright spots, notably that customer pessimism over the next five years has decreased significantly.”
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