Nearly six in ten (57%) advisers say their clients are uncertain about pensions being subject to inheritance tax from April 2027, new research from Scottish Widows reveals.
With just under a year until the changes, Scottish Widows’ Investor Confidence Barometer reveals the steps advisers are taking to prepare.
Over half (55%) say they are recommending lifetime gifting strategies to clients, while 49% are encouraging an earlier drawdown of pension assets. A similar number (51%) are reviewing clients’ retirement income and spending assumptions.
Around a third (32%) have suggested the use of alternative tax-efficient wrappers such as ISAs and 37% are advising clients to use trusts or onshore bonds. Nearly a fifth (18%) have also recommended the use of family investment companies.
Nearly half (48%) see this as an opportunity to initiate earlier family conversations around intergenerational wealth planning.
Jenny Davidson, Intermediary Wealth Director at Scottish Widows, said: “Pensions have long been a cornerstone of estate planning, offering a highly tax-efficient way to accumulate and pass on wealth. Next year’s shake up represents perhaps the biggest change we’ve seen to pensions since pension freedoms, but one that advisers are already getting well ahead of, according to our research.”
“Any sizable landscape shift like this offers advisers an opportunity to demonstrate their value and engage with wealthier clients. Those advisers who act early and help guide clients through this process will reap the long-term benefits of closer relationships and greater trust.”
