Platform assets set a new high of £1.1trn in 2024, with adviser platforms accounting for £697bn, new data from consultancy Fundscape shows.

Gross flows rebounded and were close to 2021’s high of £164bn, but net flows were dragged down to £26bn because of outflows of £136bn.

Fundscape said ISAs and GIAs bore the brunt of outflows with ISAs having net outflows of £577m in 2024 and GIAs being just positive at £40m.

The consultancy said normal service was resumed in the fourth quarter of the year, “after the doom-laden media frenzy of quarter three, which led to a rush on tax-free cash from pensions by some customers, and others to maximise their contributions before changes came into effect.”

Pension allowances were spared Chancellor Reeves’ knife which saw gross flows in the final quarter of the year saw jump 14% to £44bn, the second highest on record. Net flows stayed steady at £5.4bn.

However, a lack of confidence in the Budget meant that outflows continued to be elevated and directed into cash and annuities in the three month period, said Fundscape.

Bella Caridade-Ferreira, chief executive at Fundscape, said: “The second half of 2024 would have been more buoyant were it not for the Budget — investor confidence was on the rise and platforms were upbeat about the outlook. However, the budget triggered a new wave of uncertainty that will inevitably affect the short-term outlook. The ISA season will be the bellwether for 2025.”

She predicted that the 2025 outlook may be more uncertain, but the underlying fundamentals and long-term outlook remain strong. “Consumers need to save for retirement and the changes in the budget will see demand for advice surge.

“In our realistic scenario, which has a CAGR (Compound Annual Growth Rate) of 13%, we expect all-platform assets to rise to £2.1trn by 2029 and the adviser platform component to £1.3trn.”