The 2024 Autumn Budget’s inheritance tax (IHT) changes have significantly impacted financial advice, according to research from Standard Life, part of Phoenix Group.
With pensions set to fall within IHT scope from 2027, advisers are actively reassessing retirement income strategies.
The research reveals that 82% of IFAs have reconsidered the role of pensions in client plans, with 10% conducting full reviews across their client base. Additionally, 69% of advisers have advised or plan to advise clients to increase their retirement income. Among those, 43% have suggested boosting income by 5% or more.
Annuities are also gaining renewed interest. Following pension rule changes, 74% of IFAs are re-evaluating annuities’ role in retirement planning, with 27% increasing annuity purchase recommendations.
