Changes to inheritance tax rules from April 2027 are prompting many retirees and pension savers to rethink their retirement and estate planning strategies. The article explores how bringing unused defined contribution pensions into the inheritance tax net could create challenges for those holding less liquid assets, particularly commercial property within self-invested personal pensions (Sipps). In some cases, beneficiaries may face difficulties settling tax liabilities without selling assets, potentially creating significant complications for business owners and their families.
The reforms are also influencing investment decisions among wealthier pension savers. Advisers report that some investors are reducing risk within their pension portfolios, drawing funds earlier, or reassessing how pensions fit into their wider estate planning objectives. While pensions have traditionally been viewed as an efficient way to pass wealth between generations, the upcoming changes are encouraging a broader review of retirement income, inheritance planning and long-term investment strategies.
Read our founder, James Baxter’s comment in the full article here.