Navigating change: inheritance tax and pension planning

As the financial landscape continues to shift, Hugi Clarke, Partner, recently joined Matt Black from Elevation Wealth Management on Professional Adviser TV to unpack the implications of proposed changes to inheritance tax (IHT) on pensions.

A seismic shift in wealth planning

During the interview, Hugi described the Chancellor’s proposed IHT reforms as a “seismic change” that could dramatically alter how pensions are viewed in estate planning. With pensions now accounting for 45% of UK household wealth, the potential for these assets to be taxed under IHT has sparked concern across the industry.

Hugi emphasised the need for advisers to act earlier and broaden their planning strategies, noting that traditional estate planning may no longer be sufficient. Matt echoed this sentiment, cautioning against “pigeonholing” funds and urging clients not to panic.

Rising demand for advice

The episode highlighted a growing demand for financial advice as clients reassess the role of pensions in their retirement and legacy strategies. Hugi and Matt agreed that this moment presents an opportunity for advisers to demonstrate value by helping clients navigate uncertainty with clarity and confidence.

Financial advisers with a Professional Adviser TV account can watch the episode here.