Financial advisers have called on Government to prioritise pension reforms that would lessen the tax burden on clients.
A quarter (25%) of advisers surveyed by NextWealth and Aegon said their highest priority for the next Government would be to reduce the tax burden on consumers saving for retirement.
A further 17% of advisers called out for consistency, with 12% looking for a simplification of all regulations concerning retirement, investment and taxation.
Steven Cameron, pensions director at Aegon, said that whilst recent cuts to NI in the Budget would have been welcomed by advisers they do not go far enough.
He added that if any political party is serious about making planning for retirement and supporting pensioners a priority, they need to make their policy proposals clear within their manifestos for the upcoming election.
He said: “Advisers are also very mindful of the complexities of the current system. More simplification could help advisers explain current tax, pension and investment rules to their clients, while more consistency would improve their ability to advise on longer term financial planning. The future of the pensions Lifetime Allowance will be front of mind with the Labour Party stating it would reintroduce this in some form if in Government.
“In light of the importance of longer-term planning for retirement, we urge all political parties to set out future policy proposals in their upcoming election manifestos. It’s vital that politicians avoid constant change or unnecessary disruption when it comes to planning for retirement. Financial advisers across the country want to help their clients to ‘do the right thing’ and make well-informed decisions about securing their financial future. Complexity and constant change – be it constant tinkering or radical overhauls – makes this far more difficult to achieve.”
NextWealth conducted research for the 2024 Managing Lifetime Wealth: retirement planning in the UK report in November 2023 with 200 financial advisers.
