Financial advice firms are actively reviewing their client banks and adapting their processes ahead of the changes to pensions and inheritance tax in April 2027, according to research from TFAS Compliance Services.
Over a quarter (26%) of respondents have fully reviewed their client banks and started approaching clients, while a further 67% having already begun the process, the findings show.
Firms also reported focusing more on inheritance tax planning, beneficiary nominations, Expressions of Wish, gifting, trusts and protection, in recognition of the increasingly interconnected nature of retirement and estate planning.
The most frequently cited challenge, mentioned by 38% of respondents, was client engagement, followed by time and capacity at 35%. Technical knowledge was selected by 23%, highlighting the demand for further technical guidance and CPD, worked examples and practical client communication resources.
Richard Ardron, chief commercial officer at TFAS, said: “The overwhelming message from our research is that advice firms are already taking action ahead of the April 2027 changes.
“What is particularly interesting is that the reforms are already influencing the advice itself – from retirement income strategies and pension withdrawals to protection, gifting and wider estate planning.
“This is a significant development for financial planning, and advisers have an important role to play in helping clients understand their options and make informed decisions.”
He added: “Alongside the technical considerations, firms are also thinking carefully about how they engage clients, adapt their advice processes and ensure they have the resources and expertise needed to deliver appropriate outcomes.”
