Financial advisers and Paraplanners believe more of their clients will use pension pots to pass wealth on to their dependants after the abolition of the Lifetime Allowance (LTA), according to a new survey.
In the spring Budget the Government announced that it was abolishing the £1,073,100 LTA limit from April 2024.
Some 90% of advisers who responded to an online poll conducted during a recent live webinar either agreed or strongly agreed that the abolition of the LTA will mean more people using their pension to pass wealth to the next generation.
Meanwhile 86% stated that the indication from the Labour Party that they would reinstate the LTA if it formed the next UK Government, would not stop them recommending clients to resume pension funding if the LTA impacted them.
Finally 80% of those polled thought that the abolition of the LTA will incentivise further pension saving among clients previously affected by it.
More than a quarter said that at least 10% of their clients were currently impacted by the LTA.
M&G Wealth polled 1,800 attendees at an online webinar.
Almost half – 852 – responded to the survey, according to the company’s head of technical Les Cameron.
He said: “This is the highest ever turnout we have had for one of our ‘Techy Thursday’ webinars showing the significance of the impact the Chancellor’s LTA changes have had for advisers and their clients.
“It remains fundamental that people are incentivised to save for their retirement, but we need stability of the rules so advisers can plan effectively.”
