Nearly three in five (58%) advisers said clients have made withdrawals from pension lump sums due to speculation about changes to pension tax relief in the Budget.
The poll by Opinium also found that one in 10 (11%) say that Budget speculation has also led to some clients making plans to delay their retirement, with as many as 77% of advisers reporting that some of their clients have raised concerns about changes to pension tax relief in the Budget.
A quarter (26%) of advisers have seen clients sell private rental properties, amid rumours the Chancellor intends to make rental income subject to National Insurance. A similar number (24%) also report that clients have brought forward disposals, with 22% saying their clients have been crystallising unrealised gains or losses ahead of the Budget.
In addition, nearly a fifth (18%) say their clients have delayed transactions, such as house purchases, while 17% have seen clients increase their cash holdings and nearly one in 10 (9%) say they have clients who have moved their assets offshore or abroad due to concerns around the Budget.
Nearly two-thirds (64%) of advisers say clients have also raised enquiries due to speculation around a wealth tax.
James Endersby, CEO of Opinium, said: “Our research highlights the degree to which Budget speculation is already influencing financial behaviour. With rumours of major tax changes growing, many IFAs are seeing clients act pre-emptively, from drawing down pension lump sums to offloading rental properties.
“This level of activity underscores the deep uncertainty about what the Chancellor may announce in the Budget. While we don’t yet know how much of the speculation will be borne out, the impact is already being felt in people’s financial behaviour.”
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