Almost 65% of advisers believe clients' pension contributions will increase over the next three years, according to a survey of 500 advisers by Skandia.
A third predicts no change and just 3% expect a decrease, the study found.
The outlook follows an increase in pension contributions since A-Day. A total of 40% have seen an increase in clients’ pension contributions since April 2006 while 55% saw no change and just 2% reported a decrease.
However, 65% say three quarters of their clients only pay up to 10% of their earnings into their pension each year, although the A-Day rules mean everyone can fund up to 100% of their earnings up to the annual allowance of £225,000 for this tax year.
Skandia also highlights advisers have just 51 working days to encourage clients to contribute more to their pension before the Government reduces the basic tax relief from 22% to 20% on April 6.
Nick Bladen, head of pensions marketing at Skandia, says: “What this data is suggesting is that the A-Day effect is far from over. More and more people are becoming aware of the opportunity offered by pensions – namely huge flexibility in investment strategy and significant tax relief. This is good news for advisers and for the pensions industry as a whole.
"The current pension rules offer many more options for people to make the most of these – either through both regular and single premiums – and to make the most of the flexibility that is available we expect to see single premium funding become even more popular.
“Not everyone will have the means to fund right up to their earnings limit, but advisers and clients should consider whether contributing more than 10% in one year and benefiting from extra tax relief could be beneficial.”
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