Mark Campbell, Head of Isio Wealth Planning said: “2025 is set to be a year of reflection and recalibration for the wealth planning industry. The Government’s recent Budget introduced significant changes, from the freezing of inheritance tax thresholds to higher capital gains tax rates and the inclusion of pensions in estates for IHT purposes from 2027. Next year will be key for unpacking the details of these changes, understanding how they will be administrated, and ensuring the industry is equipped to handle them effectively. Without this clarity, it’s difficult for clients to make fully informed decisions - practicalities need to be set out sooner rather than later.
“For the sector, 2025 will likely be businesses as usual - the focus will be on getting the basics right. Clients need well-diversified portfolios, appropriate asset allocation, and enough liquidity to weather ongoing volatility. The challenge is preparing for these changes while staying calm and focused on the fundamentals - avoiding knee-jerk reactions that could undermine outcomes while ensuring long-term stability.
“The inclusion of pensions in estates for IHT purposes from 2027 is already sparking discussions. For many clients, pensions are one of their most significant assets, so this shift is forcing a rethink about how they approach estate planning. For those caught out by the changes, especially those with limited time to act, it’s essential to have the right guidance and structures in place as soon as possible as we head into 2025.
“At the same time, we expect to continue to see AI becoming increasingly integral to wealth planning next year, both in terms of improving business efficiency and offering investment opportunities. AI tools will continue to enhance processes, improve reporting, and support better client outcomes. The growth of AI will also continue to present significant long-term investment opportunities, the potential for growth in tech-related investments is clear. For wealth managers, focusing on technology-driven solutions and integrating them into client portfolios can offer the opportunity to capture growth in an evolving market. While markets may not repeat themselves, they do rhyme – staying calm, sticking to the fundamentals, and maintaining a long-term view will be key to navigating 2025 successfully for the sector.”
Richard Birkin, Head of DC Pensions at Isio said: “2025 is shaping up to be the biggest year of change for DC pensions since the introduction of auto-enrolment. Consolidation will dominate, with own-trust schemes continuing the transition to master trusts as the master trusts strive to become the so-called megafunds. At the same time, dashboards and authorised provider lists will accelerate efforts to address the small pot problem, enabling faster and smoother transitions. The goal is clear – fewer, larger, and more efficient schemes hopefully delivering real value for members.
“Retirement products and accompanying support is finally taking centre stage. Providers are positioning themselves for the launch of smarter, more member friendly decumulation strategies, default retirement solutions, and enhanced member support – all well overdue developments. The shift is driven by the need to retain assets whilst hopefully providing members with meaningful support and increased retirement income. Legislative backing for default retirement strategies would be a welcome push to make this a reality.
“Value for money will move beyond low costs and focus on what really matters, with investment in private markets and alternatives and more diverse and resilient portfolios. 2025 will be about shifting the narrative from cost to value – ensuring members get more from their savings.
“Technology will play a game-changing role in 2025. The use of AI and the development of more personalised and relevant support tools will improve understanding. The advice gap remains a challenge, but digital innovation and better regulation can help bridge this, empowering members to make informed decisions.
“But the elephant in the room remains pension adequacy. Average contribution levels, especially for ‘middle-band’ earners, simply aren’t enough to produce desired income replacement levels. Many in this cohort will not have a DB pension, and more innovative and focused contribution structures may emerge to try to better support this particular group.
“2025 isn’t just a year of change – it’s a year of opportunity to reshape DC pensions. Let’s focus on, and finally see through, some key initiatives and deliver a system that works better for members”.
Mark Jones, Reward and Benefits Partner at Isio said: "2025 will be a significant year for employers, with the Government’s Get Britain Working White Paper and the Employment Rights Bill laying the groundwork for major changes. Central to this is the creation of the new Fair Work Agency, which will consolidate enforcement powers across employment rights. With stronger powers to investigate and take action, employers face the prospect of more robust inspections and tougher penalties if they fall short. This marks a shift from reactive enforcement in certain areas, where employees were often responsible for raising claims, to a more proactive approach led by regulators. For employers, the message is clear: get your house in order now, or risk fines, reputational damage, or being named-and-shamed.
“Flexible working will also remain a key area of focus. This is no longer a nice to have – it’s a key part of any benefits strategy and will be a key bargaining chip in the race for talent in 2025. Getting this right can improve turnover and employee engagement.
“Meanwhile, cost pressures aren’t going anywhere. National Insurance (NI) and minimum wage changes will remain high on the agenda, forcing employers to make tough choices about staff reward. Employers should look at their reward package holistically, maximise use of salary sacrifice schemes (for example, for pension contributions) and may need to look for cost savings in other employee benefits. Employers should start scenario planning now, looking at how changes in NI might affect their total cost of employment. Reviewing the structure and design of benefits packages, as well as considering where support can be targeted most effectively, will be key to weathering changes. Those that prepare early will be better positioned to manage costs without compromising their employee value proposition as we move into next year.”
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