💡 How a Policy Change Is Shaping Financial Behaviour, and Why It Matters.

From Retirement Savings to Estate Tax: Why Pensions Are Now a Hot Topic in IHT Planning

📌 What’s changing (effective 6 April 2027):

Pensions will fall within the scope of Inheritance Tax (IHT). Personal Representatives (PRs) not pension providers will be responsible for reporting and paying any tax.

📌 Why it matters:

 • Larger estates may face higher tax liabilities

 • Tax-efficient retirement planning disrupted

 • Increased complexity for bereaved families

📌 Evidence of behavioural change:

 • Pension drawdowns are increasing as savers access funds earlier

 • Strategies shifting toward gifting or alternative vehicles like ISAs

 • More families seeking specialist financial and legal advice

✅ Key takeaway: Now is the time to review your estate plans, consult advisers, and prepare beneficiaries for upcoming changes.