The Shifts in Client Behaviour
Over the past couple of years, we’ve seen more twists and turns in the world of financial planning than an episode of Line of Duty.
Dan Swift, Head of Financial Planning at TrinityBridge, shared the shifts he’s seeing in client behaviour, how planners can respond, and why keeping one eye on the horizon (but both feet on the ground) is more important than ever.
Uptick in Questions about Pension Rules and IHT Planning
- “It’s really been about clients asking, ‘what does this mean for me?'”
- “That’s sparked more conversations, especially between family members.”
Dan noted a clear uptick in questions around pension rules and, in particular, their evolving role in inheritance tax (IHT) planning.
Clients are Becoming More Selective
- “For some, pensions were the plan. For others, they were just a bonus.”
- “We’re seeing people be a bit more selectiveâsome stopping additional contributions, others rethinking wrappersâbut no mass exodus.”
Dan and his team aren’t seeing panic.
Don’t Just ActâAct Smart
The lesson from the past six months?
Clients are slowly learning not to leap at every rumour.
“We had all sorts of speculation before the Autumn Budget, much of which didn’t happen,” Dan noted.
“So, when the Spring Statement came around, people were a little more measured.”
Advisers Need to be Proactive
- “We still need to be proactive. Just because clients aren’t reacting to every headline doesn’t mean they don’t need support interpreting what’s really going on.”
Dan warns against complacency.
ISA Reforms
ISAs, too, have crept back into the spotlight thanks to a swirl of reform rumours.
“Even though the Spring Statement didn’t do much, the written documentation kept the ISA reform door open,” Dan explained.
“And that was enough to prompt action.”
ISAs Remain a Core Part of the Tax-Efficiency Toolkit
- “The British ISA may never have materialised,”
- “but the underlying themeâencouraging investment over cashâisnât going away.”
Dan reminded us that ISAs remain a core part of the tax-efficiency toolkit.
Inheritance Tax Planning
With pensions set to become part of the estate, inheritance tax planning has re-emerged as a core conversation with clientsâespecially those with significant defined contribution pots.
“Use the time we’ve got. The worst thing would be to get to 2027 and not have a plan in place,”
Dan’s message is clear.
Markets on the Move
Volatility is nothing new.
“They’re not saying, ‘Get me out,'”
“They’re saying, ‘What are we doing about this?'”
Dan noted that the response from clients has been less panic and more curiosity.
Practical Moves for the Year Ahead
- “Start IHT conversations earlyâUse the 2027 pension rule change as a reason to revisit estate planning.”
- “Reinforce tax wrapper useâWhether it’s ISAs, pensions or bonds, encourage clients to use allowances early in the tax year.”
- “Review asset allocation strategiesâVolatility isn’t a reason to panic, but it is a reason to check that portfolios still reflect clients’ goals and risk tolerance.”
- “Educate around’market noise’âHelp clients distinguish short-term headlines from long-term planning.”
- “Stay agile, but steadyâPolicy may change. Governments may change. But the fundamentals of good advice don’t.”
Perhaps the biggest takeaway from this discussion is the value of staying engaged.
Financial planning isn’t just about reacting to rule changes or chasing tax breaks.
It’s about helping clients live the life they wantâconfident that their money is working as hard as it can.
Clients don’t expect us to predict the future.
“But they do expect us to help them make sense of itâand to help them prepare for what might be around the corner.”
Dan put it this way:
“If you’ve got a sound plan, market noise and tax tweaks shouldn’t derail it.