Following the raft of pension changes announced in the March Budget, including the lifetime allowance removal bombshell, almost half (45%) of financial advisers experienced an increase in enquiries from clients.
Standard Life, part of Phoenix Group, research among 203 IFAs showed that those who have clients with large portfolios had received more enquiries. Almost three in five (58%) IFAs with an average client portfolio of £200,000 + said they’ve had an uptick in contact from clients.
However, despite such inflated levels of enquiries, IFAs believe, on average, only 13% of their clients will need to update their pension planning because of the Budget changes. This rises to 15% among those who have an average client portfolio of £200,000+.
Chris Hudson, Retail Advised Managing Director at Standard Life, commented: “The pension announcements in this year’s Budget took most people by surprise, particularly the scrapping of the lifetime allowance, leading to frenzy among advisers and clients alike. Clients have clearly been scrambling for clarity around what this means for their finances and financial planning, and have been looking for support from advisers to guide them through. While advisers only expect a small proportion of their most affluent clients to be affected, many will still be seeking advice for their situation, especially as it looks like measures around the lifetime allowance could be reversed if this Government loses power.”
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