Financial advisers are dealing with a flood of client enquiries in the wake of the pension changes unveiled in the March Budget, with nearly half of IFAs or 45 per cent reporting an increase in demand for their expertise.
Standard Life conducted a survey of 203 IFAs, finding that those with clients who have larger portfolios have experienced even higher levels of inquiries. Nearly three out of every five respondents, or 58 per cent, reported an increase in contact with clients who have an average portfolio of £200,000 or more.
According to Standard Life, investors have been alarmed by the Budget’s elimination of the lifetime allowance, and many have turned to their financial advisors for advice. IFAs are stepping forward to offer clarification and help as customers struggle with the effects of the changes.
The research found that IFAs are still convinced that only some of their clients would need to adjust their pension plans as a result of the Budget amendments, despite the huge spike in inquiries. IFAs anticipate that just 13 per cent of their clients will need changes on average; however, for those with typical client portfolios of £200,000 or more, the rate rises to 15 per cent.
The study emphasises the crucial part that financial advisors play in assisting clients in navigating complicated financial transitions and coming to wise conclusions. Following the Budget pension bombshell, clients are seeking clarification, and IFAs are stepping forward to offer professional advice and guarantee that their clients’ pension schemes stay on track.
IFAs are in more demand as a result of the Budget revisions, which emphasises the need of their knowledge in assisting customers to understand changing pension legislation and protect their retirement resources. The responsibility of IFAs in offering trustworthy and knowledgeable advice is becoming increasingly important as the financial landscape changes in order to ensure clients’ long-term financial security.
Standard Life retail advised managing director Chris Hudson says: “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.”