Almost half of farmers say they plan to seek financial advice over the next six months as concerns about their finances are most likely to focus on their pensions, according to a new study.
Insurer, 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.Â
62% of all customers interviewed in the latest survey in April and May said that their attitude towards savings and investing had been impacted by international tensions – up from 36% who cited it as a factor in November 2024.Â
This was accompanied by a rise in concerns from customers about volatile stock markets.
Financial advice
Around 36% of customers in the study said they planned to seek financial advice in the next six months – with 48% of farmers saying they planned to do this.
Farmers’ concerns about their finances are most likely to be centred around their pension savings, the research found.
Last October’s Budget included plans to reform inheritance tax and also proposed that unspent private pension wealth should be included as part of estates for inheritance tax purposes from April 2027.
Many farming families use pensions as a way of passing on wealth to children who do not want to work in farming.
The study found that inheritance tax reforms continue to be a concern with some customers saying they had decided to spend their savings to avoid the tax.
Others said they planned to maximise their cash ISA (individual savings account) allowances in case of future government changes.
The study highlighted that confidence amongst farmers was 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.
However, the proportion of customers who said they were concerned about their finances over the next five years has dropped to 49% compared to 57% in November 2024, the study found.
NFU Mutual
Personal finance expert at NFU Mutual, David Nottingham said: “The latest study shows a continued increase in short-term financial concerns amongst 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.
“Inheritance tax is a particular concern for older participants, and many are worried about the impact on their pensions and finances.
“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 from 2027,” he added.
NFU Mutual said that customers remain cautious given international tensions and the continued cost of living pressures but there are some bright spots.
