Pension Inheritance

Do you know that a change of rules could affect your pension?

Passing on your pension If you had planned to grow a pension pot that would definitely see you live your retirement comfortably and leave some over for the kids, you may not be so happy with the government’s plans to change this come April 2027. Currently investing in a pension is recognised as a very cost-effective way of maximizing your tax benefits to grow a fund to provide for a more comfortable retirement. This does not completely change in 2027 only one part of it does, which is the bit where you could leave the residual pension pot to your children if you died before you used it all up. That now becomes part of your estate and is potentially going to be subject to inheritance tax at 40%. Nobody knows when they will pass so over provisioning for a longer life is the normal planning advice you are given, that means many people statistically will have residual pension funds left when they pass. Planning takes time, so if you want to know what your options are going to be, get in touch for a chat.