IFAs concerned over proposed pension death benefits tax rule changes

IFAs cite ‘impact on clients’ financial plans’ as reason for apprehension

Sahar Nazir
clock • 2 min read

The majority of IFAs are apprehensive about potential alterations to pension death benefits tax rules proposed by the government as it will “impact clients’ financial plans”, according to Standard Life.

Just over one in ten advisers have expressed support for the changes. This is according to a study conducted among 207 IFAs from 10 to 15 August 2023. Currently, if a pension owner passes away before the age of 75, their pension is passed on tax-free to nominated beneficiaries. If the pension owner is older at the time of their passing, the pension is taxed at the beneficiaries' marginal rate. However, the proposed alterations would require nominated beneficiaries to receive the pension either as a lump sum outside of a pension wrapper or as an income, taxable at their marginal rate. ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

Sahar Nazir
Author spotlight

Sahar Nazir

News Editor at Professional Adviser

More on Your profession

PFS invests £1m in future talent

PFS invests £1m in future talent

Key that financial planning tackles 'mistrust' and knowledge gaps

Sahar Nazir
clock 23 July 2025 • 2 min read
Women in Financial Advice Awards 2025: Shortlists revealed!

Women in Financial Advice Awards 2025: Shortlists revealed!

All the winners will be announced at a celebratory gala dinner on 12 November

Professional Adviser
clock 23 July 2025 • 9 min read
Money is a tool - never the goal: The role of psychology in financial advice

Money is a tool - never the goal: The role of psychology in financial advice

'The best IFAs, the ones who retain clients for decades, focus on the human side as well'

Chris Ball
clock 23 July 2025 • 6 min read