A quarter (25 per cent) of advisers would prioritise reforms that lessen tax burden on clients saving for retirement as a key focus for an upcoming government, research by NextWealth, sponsored by Aegon, has revealed.

The survey found that there was a strong desire for future government reform among financial advisers when it comes to their retirement client base.

In particular, the research found that 25 per cent advisers wanted reforms that would lessen the tax burden on consumers saving for retirement, while 17 per cent wanted government to establish a more consistent approach to implementing and overseeing pension rules, including death benefits and the lifetime allowance (LTA).

Simplification was another key priority, as 12 per cent of respondents highlighted the need for simpler rules surrounding retirement, investment and taxation.

Commenting on the findings, Aegon pensions director, Steven Cameron, stated: “It’s clear from our findings that to support their retirement clients, financial advisers want a future government to reduce the tax burden for consumers.

“Advisers are also very mindful of the complexities of the current system. More simplification could help advisers explain current tax, pension and investment rules to their clients, while more consistency would improve their ability to advise on longer term financial planning.

“The future of the pensions lifetime allowance will be front of mind with the Labour Party stating it would reintroduce this in some form if in government.

“In light of the importance of longer-term planning for retirement, we urge all political parties to set out future policy proposals in their upcoming election manifestos. It’s vital that politicians avoid constant change or unnecessary disruption when it comes to planning for retirement."

Cameron also noted that while the recently announced Budget cuts in national insurance (NI) by the current government will have been welcomed, "the question is what further reductions in tax might be delivered in future".

“While cutting NI rather than income tax preserves the generosity of pensions tax relief, it does not help those over state pension age who don’t pay NI," he continued.

Aegon has also since urged the government to provide longer-term clarity over national insurance and state pension funding, amid reports that the government could be looking to remove NI altogether.

"While government decisions on setting of NI contribution rates may now be taken separately from increases to the state pension, there are still official reports on the position of the ‘NI fund’, showing NI contributions received against payments made year on year," Cameron stated.

"The Treasury does have provisions to make special one-off payments from general taxation to prop up the fund.

"So even if NI contributions are not specifically earmarked, with NI already substantially cut and the potential for it to be scrapped, we need longer term clarity from whoever is in power on where the money for state pensions will come from.”

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