Nearly three million over-55s are planning to gift money before new inheritance rules come into force next April, says interactive investor.
On average, people plan to gift around £3,000, rising to over £5,000 among over-65s.
This means that in total, those aged over 55 are planning to give around £8.3 billion of their savings before the tax regime changes in April, which will see pensions fall into the scope of an estate for inheritance tax purposes.
Overall, 50% more people plan to gift over the next three years than did in the previous three, the research shows.
The sense of urgency also dramatically increases the older people get, with the number of over-65s planning to gift nearly double that of 56 to 65 year olds preparing to do the same.
Among retirees, avoiding further tax when they die was one of the most common reasons for wanting to gift (37%), as well as helping out a family member (41%) and wanting to see the money benefit a loved one in their own lifetime (48%).
Craig Rickman, personal finance expert at interactive investor, said: “Pensions have traditionally been one of the most tax-efficient ways to pass on wealth, but bringing unused savings into the inheritance tax net is prompting many to rethink their estate planning strategy.
“Increasing the scope of IHT makes careful financial planning more complex, but also more important. Pensions still come with valuable tax advantages, especially those enjoyed upfront, and will continue to play a central role in most retirement portfolios. But it’s also crucial to make the most of other tax-efficient vehicles, such as ISAs, which can provide greater flexibility over when and how you access your money.
“Rather than rushing to distribute pension savings before 2027, use this as a prompt to look at your finances in the round. Think about how pensions, ISAs, gifting allowances and other savings can work together, and consider professional advice where appropriate. The goal is not simply to minimise tax, but to build a retirement plan that lasts.”
