Advisers must now reassess the role of pensions in estate planning, not just in terms of income strategy, but as part of the broader tax exposure picture, writes Andrew Aldridge
The government's Autumn Budget 2024 has triggered a pivotal rethink in the world of financial advice. With the announcement that unused pension pots will fall within the scope of inheritance tax (IHT) from April 2027, financial planners are being called upon to revise long-standing strategies around retirement and estate planning. For years, pensions have served as a highly effective IHT shelter. Advisers have rightly encouraged clients, particularly high-net-worth individuals, to continue funding their pensions beyond their expected retirement income needs. The rationale was clear...
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