From April 2027, pensions will no longer be exempt from inheritance tax (IHT), prompting many UK adults to rethink their retirement and estate planning.
A recent interactive investor poll of 1,064 UK adults found that 52% consider their pension a key part of their estate planning, while 23% say it plays a smaller role. However, confidence in the pensions system remains low—44% of respondents said they had none, with another 17% uncertain.
With IHT changes set to take effect in just over two years, more than 54% of respondents plan to adjust their retirement or estate planning strategies. The October Budget confirmed that unused pension savings and certain pension death benefits will be included in estate valuations for IHT from 6 April 2027.
While the final details are yet to be clarified, the poll revealed that many are already considering action:
- 21% plan to withdraw more from their pension and spend it.
- 19% intend to withdraw and gift more funds.
- 8% expect to reduce pension contributions.
- 6% are planning to retire earlier than originally intended.
Meanwhile, 13% remain undecided, and 34% have no plans to change their current strategy.
As the second-largest DIY investment platform, interactive investor continues to track how UK savers respond to these significant changes.