If you work in agriculture and are currently seeking financial advice in Cheshire, a new survey has revealed how an increasing number of farmers are doing this.
Almost 50% of farmers questioned in a recent poll said they planned to pursue professional financial advice over the next few months, in large part prompted by concerns over pensions.
The biannual investor sentiment study conducted by insurer NFU Mutual quizzed British farmers on their attitudes towards savings and investment. Many expressed concerns related to their pensions savings following the October 2024 budget, when the Government revealed its measures to reform inheritance tax. In that announcement, the Chancellor Rachel Reeves confirmed that unspent private pension assets would be incorporated into estates for inheritance tax, taking effect from April 2027.
Until now, many farmers have used pensions as a means for distributing wealth to children unwilling or unable to themselves work in farming. Some of those questioned in the survey said they had opted to spend their savings as a means of avoiding the tax, while others indicated they were looking at maximising their cash Individual Savings Account (ISA) allowances, to head off any further changes rolled out by the Government.
The study found that farmers’ confidence was noticeably lower than in other industries. Of the farmers questioned, approximately 44% admitted to being more focused over the last three months on arranging loan repayments than making additional payments into their savings or investments. NFU personal finance expert, David Nottingham, said the survey reflected a growing appetite for specialist advice to address short-term financial challenges facing rural customers.
