Farmers more likely to seek pension advice following autumn budget

• Concern over inheritance tax

• Some farmers spend savings

• Plan to maximise cash ISAs

More farmers are seeking pension advice following last autumn’s budget which included plans to impose inheritance tax on farming families.

Almost half of all farmers plan to seek financial advice amid mounting concern about their finances – and rising concern about volatile stock markets, according to a new study by rural insurer NFU Mutual.

Some 48% of farmers said they planned to seek financial advice in the next six months – significantly higher than 36% of non-farmers who said they planned to do so. Concerns were most likely to be centred around pension savings.

Private pensions

As well as plans to impose 20% inheritance tax on farm assets worth over £1million, last autumn’s budget also proposed that unspent private pension wealth should be included as part of estates for inheritance tax purposes from April 2027.

“Many are worried about the impact on their pensions and finances,” said Mr Nottingham. Many farming families use pensions as a way of passing on wealth to children who do not want to work in farming.

“It is no surprise that many farmers’ concerns about their finances centre around their pensions given the proposals to bring pensions within the inheritance tax net.”

Financial planning

Some 62% of all customers interviewed in the latest survey in April and May said their attitude towards savings and investing had also been affected by international tension – up from 36% who cited it as a factor in November 2024.

NFU Mutual personal finance expert David Nottingham said: “The latest study shows a continued increase in short term financial concerns among rural customers due to international tensions.

“This explains why we are seeing an increased appetite for specialist advice as rural customers seek to navigate the uncertainty and secure their financial future.”

Loan repayments

Some customers saying they had decided to spend their savings to avoid inheritance tax, with others saying they planned to maximise their cash ISA allowances in case of future government changes.

Confidence among farmers is lower than that of non-farmers. Some 44% of farmers said they were more likely not to have made any additional payments into their savings and investments in the last three months.

Many said they were more focused on making additional loan repayments.

No surprise

But the proportion of customers who said they were concerned about their finances over the next five years has dropped to 49% compared to 57% last November.

Inheritance tax is a particular concern for older participants, said Mr Nottingham.

“Customers remain cautious given international tensions and the continued cost of living pressures but there are some bright spots notably that customer pessimism over the next five years has decreased significantly.”

NFU Mutual questioned 331 farming and non-farming customers about their confidence in saving and investment as part of its twice-yearly investor sentiment study.

Impartial advice available for farmers

The government’s Money and Pensions Service (MaPS) offers free, impartial guidance and information that can help farmers of all ages plan for retirement and set up a pension.

Whether you’re just starting out on your farming career or nearing retirement, the MaPS MoneyHelper service offers a range of free tools and resources to guide you through your options.

MoneyHelper provides free and impartial, easy-to-understand guidance and information on pensions, budgeting, and retirement planning.

The MaPS Pension Calculator can help you to understand how much you’ll have in retirement based on your specific contributions.

Those over the age of 50 with a Defined Contribution pension can also arrange a Pension Wise appointment, either by booking a free one hour telephone appointment or using the digital appointment on the MoneyHelper website.

Understanding pensions can be tricky, but you don’t have to go it alone – there’s expert guidance available at your fingertips.

For full details, visit the website at www.moneyhelper.org.uk