Outflows from advised platforms declined in the third quarter of 2024 for the first time in two years, analysis from The Lang Cat has revealed.

It showed that outflows from advised platforms fell from £16.3bn in Q2 2024 to £16.19bn in Q3, a 0.64 per cent decline that halted eight quarters of consecutive increases.

Gross sales across advised platforms rose by 1.83 per cent compared to the previous quarter, bringing the total to £57.28bn for the year to date, representing a £10bn increase compared to the same period in 2023.

The Lang Cat noted that, with gross sales up and outflows down, net sales were £3.1bn in Q3, a 17.04 per cent increase compared to the previous quarter and a 70 per cent rise on the previous year.

Looking at the platforms, Quilter, Aviva, and Transact took the top three spots for gross and net advised sales for the third quarter in a row.

Quilter’s gross sales were the highest quarterly sales figure on The Lang Cat’s records, while its net sales figure was the platform’s best on record and the highest quarterly total by any advised platform since Q1 2021, when many platforms benefited from a ‘flood’ of investment following the pandemic.

“The third quarter saw gross sales remaining at a high level, and this year are close to the sorts of numbers we saw in 2021, which was record-breaking,” commented The Lang Cat senior analyst, Rich Mayor.

“We’re expecting this trend to continue into the last quarter. Last time out we suggested that outflows have probably just about hit their peak and this time they’re lower, albeit only just. But we’ve revised our thinking on where these might settle at a new ‘normal’ following the Budget.

“Pensions have dictated platform growth for many years, and the legislation and conditions have largely been favourable. The Budget announcement that inherited, unspent pensions will be brought into the inheritance tax regime from April 2027 will have a gradual effect on new and existing business.

“While there’s still a whole lot of detail to be ironed out, we think this means there will be an extra incentive to consolidate existing pensions to help cut down work for beneficiaries. The measure will also likely result in higher outflows as pensions become a less attractive vehicle for passing down wealth.

“It’s logical to think some pension assets will move into platform bonds, as well as an increase in trust planning - possibly inside a bond too - and in annuity use if rates continue to be competitive.”

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