UK pension inheritance tax changes awareness survey, Digi Mart USA News (United Kingdom): Almost two thirds (64 per cent) of UK adults are unaware that unused pension pots will become subject to inheritance tax (IHT) from April 2027, according to research commissioned by Mattioli Woods. The findings point to widespread uncertainty about inheritance and retirement planning and raise concerns about how prepared households are for the upcoming tax changes.
Only 18 per cent of respondents said they were confident they could pass on money or assets to family members in the most tax-efficient way. Awareness of the pension tax changes was particularly low among those aged 50 to 64, with 59 per cent unaware of the planned legislation.
The research also found general concerns about retirement readiness. Only a quarter (25 per cent) of respondents said they were confident they have, or will have, enough money to enjoy a comfortable retirement.
Confidence was even lower among women (21 per cent) and those aged 50 to 64 (24 per cent), compared with 45 per cent of people over 65.
Understanding of wider tax issues also appeared limited. Only one in five (20 per cent) respondents said they had heard of the term ‘stealth tax’ and understood its meaning, while 29 per cent had never heard the phrase.
The findings come against a backdrop of growing concern over household finances following the 2026 Budget. More than half (53 per cent) of those surveyed expect their financial position to worsen over the next 12 months, compared with just 11 per cent who believe it will improve.
Over a quarter (26 per cent) said they were considering cutting household spending as a direct result of Budget measures. Women were particularly pessimistic, with 55 per cent expecting their finances to deteriorate over the coming year.
Pensions and retirement planning were the most common areas where respondents said they would welcome professional advice, followed by reviewing their overall finances and investing for long-term growth. Inheritance tax planning, improving returns on cash savings and reducing tax liabilities were also identified as priority areas.
Amit Joshi, managing director of Wealth at Mattioli Woods, said the research highlights a significant gap between the financial decisions people need to make and their confidence in making them. “With almost two-thirds of UK adults unaware of forthcoming IHT changes affecting some pension funds, and fewer than one in five confident they can pass on wealth in the most tax-efficient way, there is a real risk that people are not adequately prepared for the impact of changes to the tax system,” Joshi said.
Joshi added that the findings on retirement planning are equally concerning. “Just one in four people feel confident they will have enough money to enjoy a good standard of living in retirement, falling to just 21 per cent among women,” he said.
This article originally appeared in MoneyAge, a sister publication of Pensions Age.
