These are the seven most common topics clients are asking about right now regarding the next budget

Even advised savers and investors are not immune to pre-Budget jitters it seems, with independent financial advisers reporting a surge in enquiries from clients ahead of the big day on 26 November.  

This article will be Stat’tastic’ and help you pre-empt what your clients will be thinking about.  

More than two-thirds (68%) of IFAs said clients getting in touch to make changes to their financial plans ahead of the Budget is their biggest challenge.

That’s the findings from an independent study of 100 peer-group independent financial advisers (IFAs), commissioned by wealth and asset management firm Rathbones.

Almost a third (31%) of IFAs have seen a 26% to 50% spike in client enquiries ahead of the Budget. Two-thirds (66%) report an increase of 11% to 25%.  

And almost all advisers in the survey (91%) have experienced an increase in client queries at some level.

Faye Church, senior financial planning director at Rathbones, said: “The findings highlight the heightened anxiety among clients as they seek clarity and reassurance in an evolving financial landscape.  

“While speculation around a reversal of the pension lifetime allowance abolition has largely flown under the radar, potential changes to the tax-free pension lump sum have dominated Budget-related conversations – yet both are top concerns among our clients.”

The most common topics raised as areas of concern by clients include:  

• Lifetime allowance abolition changes (73%)

• Drawing down pensions tax-efficiently (55%)

• Inheritance tax planning and gifting strategies (49%)

• Passing on pensions to heirs (49%)

• Pension tax allowances (33%)

• Trust structures (21%)

• General retirement income planning (8%)  

Advisers say they are facing significant and increasing challenges in trying to keep on top of and respond to the sheer number of client requests for information and changes to current financial plans.

The biggest issue is explaining complex rules in simple terms (78%). Another big problem is keeping up with potential legislative changes (74%).

Clients are confused but also impatient. Many (68%) want immediate action before rules are confirmed (68%) in the Budget.

Despite the uncertainty, advisers feel well-positioned to respond to any material changes announced in the Autumn Budget, with 99% saying they feel either very (50%) or fairly prepared (49%).  

Church said: “Advisers are working hard to provide clarity in a fast-moving environment, but the volume and complexity of queries show just how important it is for the Budget to deliver clear, timely guidance.”  

As such, a pre-emptive communication from you to your clients covering some of these points might save you a huge amount of time and also give clients confidence in your stewardship.

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