• Press releases
  • After the Budget: UK savers react to pension inheritance changes
  • 3 in 10 feel they’ll be able to pass on less to loved ones
  • 21% now considering an annuity to limit inheritance tax implications

A significant number of UK savers believe that last month’s Budget will reduce the amount they’ll be able to leave behind in inheritance, new research1 from Standard Life, part of Phoenix Group, reveals.

Three in ten savers (30%) think the Budget will mean they won’t be able to pass on as much to loved ones. Meanwhile, with pensions now in scope for IHT (from 2027), one in five (21%) are considering taking out an annuity in retirement to navigate this change, and 31% are thinking about making financial gifts to family more regularly to avoid an IHT charge on their pension.

Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group commented: “Pension and inheritance tax changes in the Budget have put renewed focus on the need for people to make sure they are effectively using their pension assets throughout retirement. The changes could mean more savers expect to be caught in the IHT net and will begin looking for ways to navigate this to reduce the value of the inheritable funds.

“There is an increased likelihood that people will want to spend their pension as retirement income to remain below the IHT threshold. As our research shows, one in five are considering taking out an annuity. As you don’t need to use the full pension pot when buying an annuity, this approach would allow retirees to provide themselves with a guaranteed income to live on while lessening any IHT bill, and leave the remainder of their pension pot invested meaning they still benefit from various tax reliefs too.”

“The announcements made in the Budget will affect people’s finances in different ways so when thinking about making financial decisions around retirement, it remains essential that people shop around and make the most of advice and guidance to ensure they make the right decisions for them and those who might inherit their estate when they die.”

Enquiries

James Ikin  / James Merrick

Lansons / Standardlife

07825 191308   / 07974 063067

jamesi@lansons.com / mailto:james_merrick@standardlife.com

Notes to editors:   

* Standard Life’s quantitative survey was conducted with a nationally representative sample of 516 UK consumers on Tuesday 5th November.

About Standard Life

  • Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years  
  • Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme. 
  • Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together 
  • Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future.  
  • We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about. 
  • The value of investments can go down as well as up and may be worth less than originally invested.

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