FT Adviser (22/07/2019) – Almost two thirds (65 per cent) of adviser clients are concerned about potential changes to tax relief on pensions due to a change in government, latest data has shown.
According to research from Royal London, which polled 535 financial advisers, clients are also concerned about the impact of a new executive on estate planning and inheritance rules (64 per cent) and about potential changes to income tax (57 per cent).
Nine in ten pension advisers (90 per cent) reported that clients had approached them in the past two years to discuss the potential impact that a change in government could have on their finances.
Since the start of 2019, 54 per cent of advisers reported that the frequency of these conversations had either greatly (15 per cent) or slightly (39 per cent) increased.
A quarter (26 per cent) of advisers said their clients were raising the issue “often” with 10 per cent of advisers stating the topic came up “all the time”.
Alan Chan director and chartered financial planner at IFS Wealth & Pensions, noted that his clients tend to worry more about how taxation of pensions might change if there’s a new government than inheritance tax.
He said: “It is particularly concerning that taxation of pensions and inheritance have become the norm of politics and are being kicked around like a football. Clients are right to be questioning how these changes may impact on their financial plans and future.
“We normally tell our clients not to worry and we can only plan with what the rules are today and maximise on the current tax advantages now.
“Worrying about something outside of your control just adds unnecessary stress to your life, and so we reassure them that whatever the changes are we’ll be one the first ones to discuss it with them, and make the necessary adjustments to their financial plans to help them stay on track for their goals.”
Full article link: https://www.ftadviser.com/pensions/2019/07/22/pensions-tax-relief-tops-client-concerns/
