Looking ahead to the outlook for wealth planning in 2025, Mark Campbell, head of Isio Wealth Planning has set out his thoughts around the need for clarity on new tax policies, the rise of AI and a rethink on pensions.
He said: “2025 is set to be a year of reflection and recalibration for the wealth planning industry. The Government’s recent Budget introduced significant changes, from the freezing of inheritance tax thresholds to higher capital gains tax rates and the inclusion of pensions in estates for IHT purposes from 2027.
"Next year will be key for unpacking the details of these changes, understanding how they will be administrated, and ensuring the industry is equipped to handle them effectively. Without this clarity, it’s difficult for clients to make fully informed decisions - practicalities need to be set out sooner rather than later.
“For the sector, 2025 will likely be businesses as usual - the focus will be on getting the basics right. Clients need well-diversified portfolios, appropriate asset allocation, and enough liquidity to weather ongoing volatility. The challenge is preparing for these changes while staying calm and focused on the fundamentals - avoiding knee-jerk reactions that could undermine outcomes while ensuring long-term stability.
“The inclusion of pensions in estates for IHT purposes from 2027 is already sparking discussions. For many clients, pensions are one of their most significant assets, so this shift is forcing a rethink about how they approach estate planning. For those caught out by the changes, especially those with limited time to act, it’s essential to have the right guidance and structures in place as soon as possible as we head into 2025.
“At the same time, we expect to continue to see AI becoming increasingly integral to wealth planning next year, both in terms of improving business efficiency and offering investment opportunities. AI tools will continue to enhance processes, improve reporting, and support better client outcomes.
"The growth of AI will also continue to present significant long-term investment opportunities, the potential for growth in tech-related investments is clear. For wealth managers, focusing on technology-driven solutions and integrating them into client portfolios can offer the opportunity to capture growth in an evolving market. While markets may not repeat themselves, they do rhyme – staying calm, sticking to the fundamentals, and maintaining a long-term view will be key to navigating 2025 successfully for the sector.”
