Advisers and clients have become more concerned about wealth transfer since the Government’s proposals in the Autumn Budget to include unused pension assets in the estate for inheritance tax.

Some 92% of advisers said they have held conversations with clients about wealth transfer since the Budget, according to the latest Schroders UK Financial Adviser Pulse Survey.

The anticipated implementation date of April 2027 is driving the focus, according to the research. Some 47% of advisers expect that more than half of their clients will require an update to their financial and retirement plans before the proposals are introduced. 

The primary strategies discussed with clients in relation to the proposals are increasing withdrawals to then gift out of normal expenditure, 81%, as well as changing the order in which assets are drawn down from tax wrappers, 75%.

The changes to pensions announced in the Budget also brought retirement planning into focus in other ways. According to the survey, 84% of advisers are engaging clients in discussions about the suitability of annuities compared to drawdown options.

Gillian Hepburn, commercial director at Benchmark, part of the Schroders Group, said: “The Autumn Budget proposals to include unused pension funds as part of the estate for inheritance tax has turbo charged conversations with clients, not just about pension retirement funding but their broader financial plan.

"This includes increasing conversations around gifting and helping clients to understand the optimum time to transfer assets to the next generation.”

Responding to other suggested regulatory changes, 71% of advisers said they thought that proposals to restrict savings into cash ISAs will encourage clients to invest more in stocks and shares ISAs.

Almost two thirds, 64%, of advisers anticipated increased market volatility, the highest level recorded since data collection began in 2019 and up from 43% in November 2024. Additionally, the proportion of advisers expecting lower global growth has tripled, rising from 8% to 24%.

Expectations for higher geopolitical disruption have also risen to 77%, while 55% of advisers are now expecting deglobalisation to rise, indicating growing adviser concerns about the fragmentation of global economic systems.

• The survey canvassed the views of 272 advisers between 30 April and 12 May.