If you have pensions, investments, property or other assets that could form part of your estate, the upcoming Inheritance Tax (IHT) changes to pensions from 6 April 2027 may be a reason to review your financial plans. From 6 April 2027, most unused pension funds and pension death benefits are due to be brought into the value of an individual’s estate for Inheritance Tax purposes.
This means that the way you approach pension withdrawals, retirement planning and passing wealth to your family may need to be considered differently.
A local financial adviser can help you assess your individual circumstances and consider how pensions, investments, savings and other assets fit together. However, professional financial advice is not automatically necessary for everyone.
The important question is whether your financial circumstances are complex enough that personalised advice could add value.
Why Are the 2027 Pension and IHT Changes Important?
For many years, unused pension funds could, depending on the circumstances and pension arrangements, be passed to beneficiaries without being included in the deceased’s estate for IHT.
That position is changing.
For deaths occurring on or after 6 April 2027, most unused pension funds and pension death benefits will be brought within the value of the estate for IHT purposes. There are specific exclusions, including qualifying death-in-service benefits from registered pension schemes.
The Government has now legislated for the reforms through Finance Act 2026 and HMRC has published further technical information explaining how the new rules are intended to operate.
This does not mean everyone with a pension will suddenly have an Inheritance Tax bill.
Most estates are still expected to have no IHT liability. The impact depends on the size and composition of an estate, available allowances and an individual’s circumstances.
Should You Speak to a Local Financial Adviser?
There is no universal answer. For some people, their financial arrangements may be straightforward enough to manage without registered financial advice.
For others, particularly those with several pensions, substantial investments, property or plans to pass wealth to family members, the interaction between different assets can make financial planning more complicated.
A local financial adviser may be worth considering if you want to understand your options and create a plan around your particular circumstances.
5 Reasons You Might Consider Financial Advice in 2026
1. You Have a Large or Growing Pension
If you have accumulated substantial pension savings, the 2027 IHT changes could make it more important to consider how your pension fits into your wider estate.
The question is not simply:
“How much is in my pension?”
It can also be:
“How does my pension interact with my other assets, retirement income and plans for passing wealth to my family?”
A financial adviser can help you consider these factors together.
2. You Have Multiple Pensions
You might have:
It is common for people to have pensions from different employers or stages of their career.
- Workplace pensions
- Personal pensions
- Self-invested personal pensions (SIPPs)
- Older pension arrangements
- Defined benefit pensions
- NHS or other public-sector pensions
Each arrangement can have different features and rules.
Before consolidating, transferring or drawing from pensions, it is important to understand what you could gain or potentially give up.
3. You Are Approaching Retirement
The 2027 IHT changes should not be viewed in isolation from retirement planning.
If you are approaching retirement, you may already be considering:
- When to retire
- How much income you need
- When to draw your pensions
- How much to keep invested
- Whether to use savings or pension income first
- What assets you want to leave to your family
The way you draw your pension can affect both your retirement income and the assets remaining in your estate.
That is why retirement planning and estate planning increasingly need to be considered together for some households.
4. You Want to Pass Wealth to Your Family
If leaving an inheritance is one of your financial objectives, the upcoming pension changes may be particularly relevant.
From April 2027, most unused pension funds and pension death benefits will be included within the estate for IHT purposes. The personal representatives of the estate will generally be responsible for reporting and paying any IHT due on the pension element.
This could affect how families think about:
- Pensions
- Investments
- Property
- Lifetime gifts
- Trusts
- Beneficiary nominations
- Estate planning
However, there is no single strategy that will be appropriate for everyone.
5. You Are Unsure What the Changes Mean for You
The biggest reason to seek advice may simply be uncertainty.
You may have read that pensions are becoming subject to Inheritance Tax from 2027 but still not know whether the change actually affects you.
That depends on your circumstances.
A financial adviser can assess your overall position rather than looking at your pension in isolation.
What Does a Local Financial Adviser Actually Do?
A registered financial adviser can provide personalised recommendations based on your financial circumstances and objectives.
Depending on the type of advice you require, this could involve looking at:
- Pension planning
- Retirement planning
- Investment planning
- Estate and Inheritance Tax planning
- Protection planning
- Cashflow planning
- Financial goals and future expenditure
The value of advice is not simply about selecting a financial product.
It can also be about understanding how different financial decisions interact.
Does the Adviser Need to Be Local?
Not necessarily. Technology means financial advice can often be provided through video calls, telephone appointments and digital services.
However, some people prefer working with a local financial adviser because they value face-to-face meetings and an ongoing relationship.
Location should therefore be one factor rather than the only factor when choosing an adviser.
More important considerations can include:
- Whether the adviser is FCA registered
- Whether they provide independent or restricted advice
- Their relevant qualifications and experience
- Whether they specialise in your area of need
- Their fees
- The level of ongoing service provided
Money Helper recommends checking that an adviser is authorised and comparing advisers, including their costs and service.
Independent or Restricted Financial Adviser: What’s the Difference?
This is an important question to ask before choosing an adviser.
An independent financial adviser (IFA) can consider products and solutions from across the market.
A restricted adviser may be limited to particular providers, products or areas of advice.
Neither description automatically tells you whether an adviser is right for you. The important thing is understanding the scope of advice they provide and whether it meets your needs.
Wealth Genius is a restricted financial adviser, which means our advice is limited to the providers, products or areas of advice within our restricted scope.
How Much Does Financial Advice Cost?
Financial advice is not free simply because an adviser offers an initial consultation.
Fees vary depending on the type and complexity of advice.
MoneyHelper notes that advisers may charge an hourly rate, a fixed fee or a fee based on the value of investments or pensions. You should be told how the advice will be charged and how much you will pay before committing.
When comparing a local financial adviser, look beyond the initial fee.
Ask:
- Is this a one-off fee?
- Are there ongoing charges?
- What does ongoing service include?
- Are investment or platform charges separate?
- What happens if my circumstances change?
What Should You Prepare Before Meeting an Adviser?
You do not need to have everything perfectly organised.
However, gathering basic information can make the conversation more useful.
Consider taking:
- Recent pension statements
- Investment statements
- Savings information
- Mortgage or other borrowing details
- Property values
- Current income and expenditure
- Existing protection policies
- Your will and estate-planning documents
- Your retirement objectives
The adviser can then build a clearer picture of your financial position.
Should You Change Your Pension Strategy Before April 2027?
Do not make a pension decision simply because of the upcoming IHT change.
The fact that pensions are coming into scope for IHT does not automatically mean that withdrawing pension money early, transferring a pension or changing your investment strategy will be appropriate.
There can be other tax, investment, retirement-income and estate-planning consequences.
The right approach depends on your circumstances.
If you are considering a significant pension decision because of the 2027 changes, it is worth understanding the wider implications before acting.
How Wealth Genius Can Help
At Wealth Genius, we help individuals and families look at their financial position as a whole.
Our financial planning approach can cover areas such as:
- Retirement planning — understanding how your pensions and other assets could support your future income.
- Pension planning — reviewing your pension arrangements and considering how they fit into your wider objectives.
- Investment planning — assessing investments alongside your financial goals and risk profile.
- Inheritance Tax planning — considering how the 2027 pension changes may interact with your wider estate.
- Cashflow planning — modelling potential income, expenditure and future financial scenarios.
If you are unsure whether the upcoming pension and IHT changes could affect your plans, a review of your circumstances can help you understand what needs attention.
Thinking about your financial plans for 2027?
Speak to Wealth Genius to discuss your circumstances and explore your financial planning options.
Key Takeaway
The upcoming 6 April 2027 pension and Inheritance Tax changes are an important reason for some UK households to review their financial arrangements.
Most estates will not necessarily become liable for IHT, but people with substantial pensions, investments, property or wider estate-planning objectives may want to understand how the rules could affect them.
A local financial adviser can provide personalised advice where your circumstances require it, but choosing an adviser should be based on their qualifications, regulatory status, expertise, service and fees — not simply their location.
Most importantly, do not make major pension or investment decisions purely because of the upcoming rule changes. Consider your wider financial circumstances first.
Frequently Asked Questions
Will pensions be subject to Inheritance Tax from 2027?
– From 6 April 2027, most unused pension funds and pension death benefits will be brought into the value of an individual’s estate for IHT purposes. Certain benefits, including qualifying death-in-service benefits, are excluded.
Do I need a financial adviser because of the 2027 pension changes?
– Not necessarily. It depends on your circumstances. Professional advice may be particularly relevant if you have multiple pensions, substantial assets, complex family circumstances or specific estate-planning objectives.
Should I withdraw my pension before 2027 to avoid Inheritance Tax?
– There is no general rule that withdrawing a pension before 2027 will be beneficial. Taking money from a pension can have income tax, investment and retirement-planning consequences. Your individual circumstances should be considered before making such a decision.
What is a local financial adviser?
– A local financial adviser is a financial adviser who provides services to clients within a particular geographical area, often including face-to-face meetings. However, many advisers now provide advice remotely as well.
How do I check whether a financial adviser is registered?
– You can check whether an adviser or their firm is registered through the Financial Conduct Authority’s Financial Services Register. MoneyHelper also recommends checking an adviser’s registration status before receiving financial advice.
Is financial advice expensive?
– Costs vary depending on the adviser and the type and complexity of advice required. Advisers should explain their charges before you commit.
This article is provided for educational and informational purposes only and does not constitute financial advice or a personal recommendation.
The information reflects the rules and Government announcements available at the time of writing. Tax rules and legislation may change, and the impact of the 2027 pension and Inheritance Tax reforms will depend on individual circumstances.
You should consider obtaining appropriate registered financial advice before making significant decisions about pensions, investments or estate planning.
Tax treatment depends on individual circumstances and may be subject to change.
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