The advice profession is undergoing profound change.
From pension reforms in last year’s Autumn Budget to record-breaking inheritance tax (IHT) receipts, advisers need to respond to a rapidly-evolving legislation landscape and shifting client needs.
Demographic shifts, technological advancements and industry consolidation are also reshaping the profession. This seismic transformation is why we framed our recent Octopus Live in the Capital event as ‘The Great Advice Shift.’
Early conversations
Even as we approach this year’s Budget, one of the key topics of the day remains how the Autumn 2024 Budget is impacting advisers and their clients, particularly in light of upcoming IHT changes on pensions from April 2027.
Changes in taxation, pension policy, and inheritance rules create a climate of unpredictability, which can unsettle clients and complicate planning decisions.
According to government data, currently 4-5% of estates are eligible for IHT, but following the pension changes, this figure is set to reach 10% by 2030.
Yet, some advisers told us that these changes are shaping client behaviour positively, and that they’re seeing more focus on estate planning as the IHT net has been widened.
Data from Dynamic Planner in June this year found 72% of advice firms are serving more clients than they were a year ago and 86% of advisers expect to increase their client base further over the next 12 months.
There is a greater awareness among clients to start these conversations earlier, too, to give themselves more time, flexibility and control.
This is resulting in advisers starting to see clients in their 50s rather than their 70s, as the new rules accelerate demand for planning conversations.
Whether clients act immediately is another matter, but, either way, they want a plan that can withstand change where their core financial objectives remain protected.
Planning for the wealth transfer
With trillions expected to transfer across generations in the coming decades, holistic family and estate planning is becoming essential.
It’s therefore not surprising that one of the panels at our event discussed the importance of framing wealth planning as a family conversation rather than focusing solely on individual clients.
Blended families, second marriages and other modern family structures add complexity, making clear communication and transparency critical
This includes looking both down to the next generation and up to understand the wider family context, ensuring that adult children are aware of their role and expectations within the family plan.
Blended families, second marriages and other modern family structures add complexity, making clear communication and transparency critical to avoid surprises.
Advisers are also seeing younger generations proactively looking to understand about inheritance and financial planning, often sparked by information they encounter online.
The advisers’ role in guiding families through these conversations, filtering out misinformation and helping them develop flexible plans that work for everyone involved is only getting more important.
A growing need for professional connections
Another key shift highlighted at our event is the increasing importance of building a strong network of professional connections.
Advisers can’t be experts in everything, so there will be an increasing need to lean on specialist support from partners who can help navigate the evolving tax landscape.
As tax rules become more complex and clients’ needs more nuanced, advisers are recognising the value of leaning on trusted experts to deliver long-term value to their clients.
Advisers can’t be experts in everything, so there will be an increasing need to lean on specialist support from partners who can help navigate the evolving tax landscape.
Accountants, lawyers, and technical specialists are all becoming vital allies for advisers seeking to deliver joined-up solutions. Given the speed and scale of policy change, professional partnerships are now seen less as optional and more as an essential part of an adviser’s toolkit.
The case for holistic estate planning
A key theme echoed at our event was that the upcoming pension changes are a textbook example of why advisers must take a more holistic approach to estate planning.
Advisers noted a sizeable rise in annuity sales and whole of life policy uptake throughout 2025, alongside increased conversations around gifting through excess income and extracting pension tax-free cash.
Paul Feeney, chief executive of Shackleton, said at the event that “the Budget has reset the emotional contract between government and people, and it’s led many to think a bit outside the box”.
This has led to advisers looking beyond traditional solutions to a wider range of investment structures with tax benefits, across the accumulation and decumulation states of client investment journey, leveraging not just the likes of ISAs, but also venture capital trusts and business relief.
The more these investment structures are built into a client’s financial plan, the more flexibility they have when unexpected change occurs.
Legislative change is creating both complexity and opportunity – and, importantly, no single solution is enough
What’s clear from the discussions is that making full use of every option creates the opportunity to demonstrate the real value of robust advice.
The core takeaway
All our conversations from our event came to a similar conclusion: ultimately, legislative change is creating both complexity and opportunity – and, importantly, no single solution is enough.
Advisers who take a proactive and well-rounded approach to estate planning are better placed to demonstrate long-term value and strengthen client relationships over time.
Kristy Barr is co-head of retail investments at Octopus Investments
