The inheritance tax pension change introduced by the Chancellor in the Autumn Budget has sparked a focus on financial planning, with people increasingly looking at new ways to reduce their IHT liabilities, says Standard Life.
Research from the company found nearly a third (31%) of savers are considering gifting money to family members more regularly to reduce future IHT liabilities on their pension savings. Meanwhile, a fifth (21%) are thinking about taking out an annuity in retirement to better navigate potential IHT complications by drawing an income rather than leaving their pension untouched, Standard Life said.
In addition, three in ten (30%) savers are now considering professional financial advice, with a further 25% planning to engage with their pension provider.
Mike Ambery, retirement savings director at Standard Life, said: “Following the recent Budget, many individuals are reviewing their options to ensure their retirement plans align with their personal and family goals. While it’s natural to consider how to minimise IHT liability through strategies like increased gifting, it’s important that people consider their own retirement incomes and remember that pensions need to last for the whole of retirement.
“It’s positive to see that so many are considering seeking financial advice. These complex decisions almost always benefit from professional help to ensure the right balance is struck between mitigating IHT and securing ongoing financial wellbeing in later life.”
Main image: kelly-sikkema-kxtB2TFBF2g-unsplash
