Advisers are seeing a surge in queries around pensions taxation and wealth protection ahead of the Budget on 30 October, according to new research by AJ Bell.

A study by the investment platform found that almost all advisers (99%) surveyed said their clients had approached them with questions.

Uncertainty around what may or may not be included in the Labour Government’s inaugural Budget next week has created a flurry of speculation that has seen rumours of a potential flat rate of pension tax relief and changes to pensions tax-free cash push people into making decisions.

AJ Bell’s findings, based on 131 responses to an online survey of advisers, revealed that taking pension tax-free cash (33%) and increasing pension contributions (16%) have become more common in response to Budget speculation.

Capital gains tax (CGT) was also in the spotlight, with 27% of advisers seeing a rise in CGT queries, and 19% seeing a corresponding increase in the number of clients looking to sell assets and realise gains before the Budget.

Head of public policy at AJ Bell, Rachel Vahey, said it was “hardly surprising” that 99% of advisers had seen queries and requests generated off the back of speculation ahead of Chancellor Rachel Reeves’ Budget announcement.

“The fact that a third of clients have requested to take tax-free cash, a decision which in some cases could find people in a worse financial position longer-term, should be concerning to a Government who are also committed to harnessing the investment power of UK pension funds to fuel its plans for economic growth,” Vahey said.

“Aside from highlighting the importance of financial advice for making measured long-term financial decisions, this lack of clarity does not help savers or the Government.

“Although recent reports suggest that Reeves has backed away from introducing a flat rate of pensions tax relief, a week and a half still feels a long time to keep people who’ve saved all their lives for a decent standard of living in retirement on the hook.”

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