Only 2% of IFAs polled by Canada Life expected a reduction in demand for tax and estate planning in the future.
In separate research, the AKG report ‘Future of Advice – Beneath and Beyond’, found that a third (32%) of consumers would be happy to pay for specific advice on inheritance tax planning.
A further 39% said they would consider paying for the services of a financial adviser when thinking about their retirement planning and choosing to retire.
The results of the Canada Life survey come as separate research from advice network Openwork showed parents and grandparents were risking falling foul of rising inheritance tax bills by helping their families financially.
Inheritance tax risk is increasingly on the radar of many advisers as the growing importance of the “Bank of Mum and Dad” in the housing market highlights the demand for more inter-generational gifting.
The pandemic also appears to be accelerating the desire by some families to help family members financially.
Despite this, Openwork’s research showed nearly half (46%) of parents and grandparents were unaware that they could face a tax bill if they gave money to children and grandchildren while nearly two out of five (38%) did not know there was any potential tax risk from helping family members financially.
Even among consumers who understood there was a possible tax implication there was confusion, with 80% saying they found the rules complicated, according to the research from Openwork.
Neil Jones, tax and estate planning specialist at Canada Life, said: “Advisers are clearly seeing an increase in demand for their services. This is being driven by consumers seeking advice on later life Financial Planning needs, many of whom have been prompted to take action by the global pandemic. This is a sweet spot for advisers as we witness exponential growth in the ‘Complex Families, Complex Finances’ demographic.
“Financial Planners looking to the future will see the potential for opening their door to new clients and producing holistic plans that not only help clients today but create the potential to advise multi-generational family units too.”
Canada Life’s research was conducted by Opinium Research among 200 financial advisers in November.
Openwork’s research was conducted among 1,280 adults aged 18-plus, including 760 parents and grandparents, online by researchers Pure Profile in December.