A fifth of wealthy over-55s in the UK are unaware that pensions are set to become liable to inheritance tax, new data shows.
A survey conducted by wealth management firm Charles Stanley found 19% of high net worth individuals over 55 said they didn’t know that unused private pensions will become liable for inheritance tax (IHT) from April 2027.
And of those who said they did know, a quarter (25%) said they were not actively taking any action to account for the change.
The major change was announced at last year’s Autumn Budget and has been a hot topic over the past year. Speculation is mounting that the government may make further changes to the IHT regime in the upcoming Budget in November, such as tinkering with gifting rules.
Harry Bell, director of financial planning at Charles Stanley, said: “Pensions are among the most valuable assets people hold, yet many remain unaware of how upcoming reforms could affect their estate planning. From April 2027, unused pension pots will fall within the scope of inheritance tax, which could significantly increase liabilities for families.
“While there’s no need for knee-jerk reactions, understanding the implications and planning ahead is essential. These changes alter long-standing assumptions about retirement planning, so taking advice now is crucial to avoid unexpected tax bills.”
