Pension first or last? What the numbers really tell us

For years, retirement income planning followed a familiar order: use taxable assets first, then ISAs and leave pensions until last. With unused pensions generally outside the estate for inheritance tax (IHT), that often made sense. But from 6 April 2027, most unused pension funds and pension death benefits will be included when calculating IHT. That has prompted some to argue the order should be reversed. If a pension could face IHT and, following death after age 75, income tax when the beneficiary takes benefits, why not spend it first? The focus on tax after death can overlook...