26/10/2026
💭🤔 For years, many people viewed their pension as more than just a source of retirement income. It was also a tax-efficient way to pass wealth on to future generations. But changes coming into force in April 2027 could prompt many families to reconsider their retirement and estate planning. 🏛️⚖️
From this date, most unused pension funds will be included when the value of someone's estate is calculated for inheritance tax (IHT) purposes.
Many people who planned to leave unused pension savings to children and grandchildren free from IHT will now need to revisit this strategy. It means some retirees are facing a new dilemma: should you preserve your pension, or spend it?
The pensions and IHT changes coming in from 6 April next year, mean many families may need to review their estate planning strategy. This includes how they access assets, and in what order of priority, in retirement.
In the past, it often made sense to preserve pension assets and draw from other savings first in retirement. This was because pensions usually sat outside an estate for IHT purposes. But that logic has been turned on its head.🙃
Read more: https://www.northumbriafm.co.uk/article/detail/sjpp/the-new-retirement-dilemma-preserve-or-spend-your-pension
Northumbria Financial Management Ltd is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority).
SJP Approved 26/10/2026
