Advisers push back on IHT plans for pensions

Most advisers recommending early pension access and gifting

Sahar Nazir
clock • 3 min read

The majority (94%) of financial advisers believe that inheritance tax (IHT) is the wrong approach for taxing pension wealth on death, according to AJ Bell.

In a survey of 301 advisers conducted between 14 March and 2 April 2025, 94% said IHT is not the best way to tax unused pensions. The findings come in response to the government's plan to subject unspent pension funds to IHT on death from April 2027. The data also revealed that over half (53%) of advisers surveyed reported new clients seeking advice specifically due to the proposed IHT changes, while 84% said estate planning queries have risen. Meanwhile, 63% of advisers saw clients request earlier pension access, and 62% reported questions around gifting rules. As a result, 64% have ...

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