Budget uncertainty has been pushing savers to access tax free cash from their pensions for the second year running, according to Tatton Asset Management CEO, Paul Hogarth.
While the company reported a positive first six months for 2025, Hogarth believes flows would have been better if it was not for backdrop of the upcoming Budget.
“Obviously there is a concern around [the Budget] and some people have been taking the tax free cash out of pension schemes,” Hogarth told FT Adviser. “So there is a little bit of nervousness around that, for sure.
“Flows would have probably been even better if we didn’t have that backdrop but unfortunately that’s outside of our control.”
Hogarth believes the number of people taking tax free cash from their pensions is similar to the numbers seen in the lead up to the 2024 Budget.
Though, once savers take the money out of their pensions, they are not always sure what to do with it, added Hogarth.
“People are taking cash, but not necessarily looking to spend it, they are just protecting it a little bit,” he said.
“Once we get the Budget out of the way, and I can’t wait to get it out of the way, things will settle down.”
Last week (November 18) Tatton’s interim results showed assets under management and influence increased 29.6 per cent to £25.8bn, compared with £19.9bn in September 2024, while the dividend increased by 26 per cent.
Tatton now works with more than 1,700 advice firms with more than 167,000 client accounts.
Hogarth added: “As MPS continues to thrive and become ever more popular we have managed to do very well on flows.
“I really just love the fact we are now attracting more and more IFA businesses to work with us.”
Hogarth is confident Tatton will reach its £30bn AUM target by the end of 2029 and expects the firm will be able to reach this through organic growth rather than through mergers and acquisitions.
tara.o’connor@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
