Six in ten financial advisers want greater certainty over pension taxation, while more than half are calling for a simpler tax system ahead of next week’s Autumn Budget, according to Royal London.

The poll of 85 advisers found that 59% identified pension tax certainty as their top priority, followed by tax simplification at 53%. Other priorities included greater incentives for UK investment (38%), more detail on social care reform (35%) and inheritance tax reform (34%).

Uncertainty over the planned changes to the inheritance tax treatment of pensions is already influencing client behaviour, it found. Almost two-thirds (64%) of advisers said the changes were the issue most frequently raised by clients, while 84% said they had affected discussions to some or a great extent.

Half of advisers had seen an increase in clients gifting lump sums or making earlier pension withdrawals, while 49% reported more gifting under the normal expenditure from income exemption. Almost half (48%) had also seen increased reviews of estate plans.

The changes could have wider implications for long-term saving. Some 39% of advisers expected clients to make greater use of other savings and investments, while 25% thought some might reduce pension contributions. However, 46% said it was too early to assess the impact.

The apparent decision to rule out an increase in capital gains tax in the Budget will also ease one area of concern. Half of advisers said a rise from April 2027 could prompt clients to bring forward investment disposals, while 48% expected clients to restructure investments to improve tax efficiency.

Despite the potential for greater certainty on capital gains tax (CGT), advisers remain pessimistic about the Budget’s overall impact. Almost two-thirds (62%) expect it to have a negative effect on clients’ long-term financial security, including 20% who anticipate a significant negative impact. Just 9% expect a positive outcome.

Jamie Jenkins, head of policy at Royal London, said: “The bigger message coming through from advisers is that people need certainty and simplicity if they are going to plan confidently for the long term. Changes to the inheritance tax treatment of pensions are already influencing conversations and, in some cases, changing behaviour.

“Advisers are telling us clearly that they want greater stability around pension taxation and a simpler tax system. Providing that certainty would give people firmer foundations on which to make important decisions about saving, investing and retirement.”

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