The decline comes ahead of major inheritance tax changes due to take effect on 6 April 2027, when unused pension pots will become subject to IHT.
Nick Henshaw, inheritance tax expert at Wesleyan Financial Services, said advisers are still working from limited HMRC guidance, with important details around administration and reporting yet to be clarified.
He highlighted concerns around the proposed relief mechanism, warning that some estates could face unnecessary additional tax liabilities where pension assets push clients above IHT thresholds.
Henshaw urged advisers to begin stress-testing client estates now, despite final HMRC guidance not expected until spring 2027 — leaving a relatively short window for preparation.