Advice professionals are switching strategies in preparation for the changes announced in the Autumn Budget, turning to pension gifting, trusts, annuities, and onshore bonds, according to a report from The Lang Cat.

Its State of the Platform Nation report found that the “overwhelming majority” of advisers were already acting to adjust to the changes, with 76% planning to utilise pension gifting strategies.

In the Autumn Budget, Chancellor, Rachel Reeves, announced that pensions would be brought into scope of inheritance tax (IHT) from April 2027.

More than half (51%) of advice professionals expected to increase their use of trusts, while 30 per cent were planning to increase allocations to onshore bonds.

Just 3% did not plan to make any changes due to the IHT changes, while the same percentage did not believe the proposed changes would actually happen.

The Lang Cat said the findings suggested the policy changes were likely to impact platforms further, as pension assets have historically underpinned their growth.

“The industry is in transition and our latest report paints a picture of strategic urgency and platform reinvention,” said The Lang Cat senior analyst and report author, Rich Mayor.

“With pensions no longer the golden goose of intergenerational wealth transfer, advisers are future-proofing fast and platforms could be in for a bumpy ride.”

The report also revealed that there were £65.8bn in platform outflows in 2024, a new record, with advisers citing competition from products such as annuities and cash products, and clients paying of mortgages, amid a higher interest environment.

More than two thirds (67%) of advice professionals said they had recommended annuities more in 2024.

Onshore bonds had risen to become the second-largest source of net platform sales after pensions, driven by capital gains tax cuts reducing the appeal of general investment accounts.

“Despite some of the strongest gross sales figures we’ve seen, platforms are struggling with the tide of outflows,” said Mayor.

“Most assets under management growth came from market momentum rather than net sales. That’s not a winning long-term strategy.

“Pensions have long been the engine of platform growth. But that seems to be changing. The IHT reforms expected in 2027 are likely to mean higher outflows from pension wrappers and will likely accelerate adviser shifts to annuities, trusts and onshore bonds. We’re already seeing the data reflect that shift.”

“As the financial advice landscape reshapes itself around fiscal policy and economic volatility, one thing is clear: agility and innovation are no longer optional for intermediated platforms. They’re survival strategies.”

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