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Pension freedoms increase need for accountancy tie-ups

Pension freedoms increase need for accountancy tie-ups

Nearly nine out of 10 advisers are expecting to work more closely with accountants, according to new research from Prudential.

The provider commissioned PollRight to interview 120 IFAs at the end of August, and found that the biggest growth area will be specialist tax advice – with 67 per cent expecting to need additional expertise as pension freedom beds in and retirement planning becomes more complex.

Also in response to the recent reforms, a third of advisers cited personal inheritance tax planning as a growth area in partnership with accountants, while 32 per cent believed that business IHT and legacy planning is likely to become more pressing.

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The research also found that 29 per cent of advisers believed their work with accountants will increase significantly over the next two years.

Vince Smith-Hughes, head of business development at Prudential, called it a “business development perfect storm” which has developed over the last six months.

“Pension freedom is driving up the demand for specialist client services such as intricate tax advice and business legacy planning, while advisers have been quick off the mark to extend their service offering and meet the growth opportunities opening up for their businesses.”

To help advisers develop the necessary professional relationships to best deal with the pension freedoms, Prudential is hosting a series of nationwide seminars for advisers and accountants, supported by the Institute of Chartered Accountants of England and Wales.

John Gaskell, of the ICAEW Financial Services Faculty, added: “Closer working relationships between financial advisers and accountants offers a smart solution for clients facing some pivotal tax and planning decisions.