Research by NextWealth and Quilter suggests the planned inheritance tax changes to pensions, due to take effect in April 2027, are already increasing demands on financial advisers. Based on interviews with advisers and industry specialists, the study found firms are spending more time helping clients navigate uncertainty, emotional concerns and delayed decisions. With the reforms approaching, advisers say pension planning has become one of the biggest challenges to emerge in recent years.
The report also highlights growing concerns over client inaction, with delays reducing planning opportunities and forcing more time-sensitive decisions. It identifies several challenges for advice firms, including the need to revisit long-standing estate plans, manage clients’ emotional reactions to potential tax bills, cope with more complex and time-intensive reviews, and reduce the risk of future disputes involving family members who were not previously included in planning discussions.