The majority (69%) of independent financial advisers (IFAs) think it is risky for clients to plan their finances around the lifetime allowance (LTA) removal being in place in the long term, Standard Life research has found.
The research conducted among 203 IFAs earlier this month found while the majority supported (76%) or strongly supported (52%) the removal of the pensions LTA in the Spring Budget, more than two-thirds warned against clients planning their finances around the measure.
Just 9% of those surveyed thought it would be safe for clients to plan on the removal of the LTA being in place in the future.
The survey also found the vast majority (91%) were in favour of the money purchase annual allowance rising from £4,000 to £10,000, with 69% strongly supporting this.
The majority (86%) also supported the increase of the annual allowance from £40,000 to £60,000, with 59% strongly supporting this. Additionally, three-quarters (74%) supported the changes to the tapered annual allowance, while 52% strongly supported this.
Standard Life retail advised managing director Chris Hudson said the pension changes announced in last month's Budget were popular among IFAs, but there was less confidence about the long-term future of the measures.
"The removal of the LTA has become a political hot potato with Labour signalling it will reverse the decision if it comes to power. As a result, not only are advisers having to get their heads around the implications of the LTA removal for their clients, but they are also second guessing whether it's worth making financial plans now for something that may change in near future.
"The uncertainty around future policy could lead to advisers and clients making poor decisions, and this is incredibly concerning."
