Investors focus on securing family’s financial future ahead of tax changes
UK investors are prioritising passing on their wealth to family members in order to avoid the damage of looming tax raids, fresh research has found.
Over 50 per cent of people approaching retirement ranked passing on wealth as a top priority, up from 32 per cent in 2023, according to a survey from BRI wealth management, as savers choose to focus on securing their family’s financial future over worrying about the market performance of their short term investments.
Only 45 per cent of people said the level of their investment returns was their greatest worry, a sharp decline from the 58 per cent recorded in 2023.
Away from supporting family, worries over the increasing cost of later life care was also a growing priority.
For 55 per cent of respondents, the cost of old-age care became a leading concern this year, overtaking both investment returns and retirement lifestyle.
Wealth rush
The rush to give wealth to family members has been credited to tax changes introduced in last Autumn’s Budget, including bringing pensions into the scope of inheritance tax, by industry figures.
The government estimates this decision will raise a total £1.5bn by 2030 and bring in roughly 1.5 per cent more estates on top of the current 4 per cent.
Dan Boardman-Weston, chief executive at BRI said: “This research reflects the evolution of investor priorities.”
“While market performance will always matter, families are increasingly focused on protecting wealth, supporting the next generation and preparing for the realities of ageing.”
Business woes
Business owners have also shifted their investment priorities in recent years, amid an overhaul of employment law and an ever changing economic environment.
Nearly three quarters of UK business owners said extracting money tax-efficiently is their biggest concern, a 20 per cent increase from 2023.
Meanwhile, broader macro-economic pressures also continue to weigh heavily on owners, including supply chain vulnerabilities exposed by the introduction of Trump’s tariffs as well as the falling demand for goods and services.
The increase to national insurance contributions in April has also impacted employers through increasing labour costs and reducing profitability leaving many small businesses forced to shut their doors.