More than two thirds (68%) of financial advisers cited clients wanting to make changes ahead of the Budget as their biggest challenge, according to Rathbones.
More than nine in 10 (91%) advisers have experienced an increase in client queries, with nearly a third (31%) reporting a spike of 26-50%, while two thirds (66%) have seen an increase of 11-25%.
Pension concerns were the most common topic raised by clients, including lifetime allowance abolition changes (73%) and drawing down pensions tax efficiently (55%). Nearly half (49%) of advisers said passing on pensions to heirs was a concern for clients, while a third (33%) pointed to pension tax allowances.
Inheritance tax planning and gifting strategies also feature highly amongst clients (49%), as well as trust structures (21%) and general retirement income planning (8%).
Rathbones said advisers are also facing mounting challenges in responding to client concerns. More than three quarters (78%) of advisers said explaining complex rules in simple terms was their biggest hurdle, closely followed by keeping up with potential legislative changes (74%) and clients wanting immediate action before rules are confirmed (68%).
Despite the uncertainty, 99% of advisers said they feel well positioned to respond to any material changes announced in the Budget.
The survey follows separate research from Rathbones which found that 43% of clients with up to £5 million in investable assets expect to require advice on inheritance and estate planning over the next 12 months. Gifting, which accounts for 11% of queries, has also seen increased interest.
Faye Church, senior financial planning director at Rathbones, said: “The findings highlight the heightened anxiety among clients as they seek clarity and reassurance in an evolving financial landscape. While speculation around a reversal of the pension lifetime allowance abolition has largely flown under the radar, potential changes to the tax-free pension lump sum have dominated Budget-related conversations – yet both are top concerns among our clients.
“Advisers are working hard to provide clarity in a fast-moving environment, but the volume and complexity of queries show just how important it is for the Budget to deliver clear, timely guidance.”
Main image: milad-fakurian-iFu2HILEng8-unsplash
