Some 84% of 175 advisers who attended Suffolk Life’s ‘Why SIPP It?’ roadshows said this was the case for them.

The roadshows covered how the current pension rules and changes are affecting advisers’ clients, focusing on 4 key areas.

After reaching the end of the first tax year in which the tapering rules applied, according to Suffolk Life’s survey, the majority of advisers were unable to accurately calculate their clients’ threshold and adjusted incomes before the end of the tax year, with 41% only able to calculate these for some clients, and 43% unable to complete the calculations for all or most clients.

Jessica List, Suffolk Life’s pension technical manager, said: “Our survey results showed, perhaps unsurprisingly, that the tapered annual allowance is causing significant issues for a considerable number of advisers. In general, and in line with the values of pension freedoms, advisers and clients value flexibility, whether that is around the MPAA or the rules surrounding death benefits.”

However, only half of advisers said they had clients who contributed based on estimates.

Ms List said: “These findings suggest that a significant number of advisers have clients who either stuck to the £10,000 minimum allowance regardless of their income, or much worse, were put off from contributing altogether.”

The survey also found 36% of advisers felt the MPAA reduction will make them less likely to move a client from capped to flexi-access drawdown.

Ms List said: “This highlights how much flexibility matters to advisers and their clients, the ability to make further tax-efficient savings in the future, if necessary, is still an important factor in the advice process.”

Over a third (34%) of advisers have had problems with schemes not offering the required benefits.

Ms List said: “Beneficiaries may find themselves only able to receive a lump sum death benefit if the scheme where the investor died does not offer beneficiaries’ drawdown.

“As this problem doesn’t stem from the legislation itself, it’s possible that some providers will update their rules in the future.

“In the meantime at least, these results highlight the importance of checking an individual’s pension scheme during their lifetime to ensure that their beneficiaries will have the required options available to them.”