Early tax year reset offers opportunity for advisers – Wealthtime

Financial advisers are reporting that over a third (34 per cent) of their clients plan to open or top up an ISA early in the new tax year, research released by Wealthtime has shown.

The adviser platform business also revealed that 26 per cent of clients are intending to adjust their regular savings and investments while 21 per cent plan to review their pension contributions.

Wealthtime carried out a survey among 1,000 UK adults with average investable assets of £350,000, and found that many clients were looking to reset their financial plans after the end of the tax year.

However, Wealthtime warned that the early momentum in a tax year does not always last. Around one in five (18 per cent) respondents already expect to delay taking action again, which the group said highlights how easily good intentions can slip without the right support.

Wealthtime also suggested its results showed how common tax year-end regret has become. Three quarters (74 per cent) of clients reported at least one regret from the previous tax year, with the most common reasons including leaving decisions too late (27 per cent), missing an allowance (23 per cent) or keeping too much money in cash (18 per cent).

CX director at Wealthtime, Kylie Clark, commented: “The start of the tax year is a natural reset point in the planning cycle. Our research suggests that many clients finish the tax year with a stronger sense of what they want to do differently, but that motivation can fade quickly.

“Many may benefit from a more defined plan and earlier engagement to help turn intent into action. For advisers, it is a good opportunity to start conversations early, help clients set priorities and maintain momentum for the year ahead.”

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