Pensions  

Third of advisers say scrapping LTA will create complexity

Third of advisers say scrapping LTA will create complexity
Many advisers said they need more (Mikhail Nilov/ Pexels)

More than a third of advisers think scrapping the lifetime allowance will result in a more complex system for the industry. 

Ahead of the abolishment of the allowance on April 6, Opinium surveyed advisers on their thoughts. 

The research and insights agency found 65 per cent felt positive about the changes, while 64 per cent believed people will be better off in retirement.

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However, more than a third (34 per cent) think it will keep people in work for longer.

Alexa Nightingale, global head of financial services research at Opinium, said: “It is positive that advisers believe the LTA changes will have good implications for retirement, but concerning that so close to the changes coming into effect, many feel unprepared and unsupported in advising on them.

"It’s a really good opportunity for the providers that IFAs work with to step up and ensure advisers have the support they need in understanding the changes and communicating them to their clients.”

While around half of advisers think it will simplify things for consumers, 35 per cent think it will result in a more complex system for advisers. 

A similar number of advisers feel they need more support in advising on the changes. 

Speaking to FT Adviser last week, Andrew Tully, technical services director at Nucleus, said the legislation had been rushed through and there were still parts of it where advisers need clarity.

He said: "The legislation to abolish the lifetime allowance has been rushed through and there has been insufficient time to deliver a change of this magnitude.

"We are only a few days away from implementation and there are a whole host of areas where we don’t yet have clarity."

Opinium's poll also found 22 per cent of advisers were stressed about turning around the new systems and literature in time. 

The same number also said they were concerned about communicating the implications to their clients in the timeframe. 

tara.o'connor@ft.com

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