Proposed changes to inheritance tax (IHT) regulations on pensions from 2027 are causing significant concern among investors, prompting many to consider withdrawing funds prematurely for more tax-efficient use. A study by Charles Stanley Direct reveals that over 26% of investors plan to take money out of their pension pots early, while 21% aim to gift funds to family members and 18% plan to spend their pension pot more quickly to exclude it from their estate. Experts warn of the risks associated with premature withdrawals and emphasize the need for careful financial planning and professional advice to mitigate potential negative consequences in retirement.
New HMRC regulations are threatening the future of our nest eggs, with worries that retirement savings may face jeopardy due to pensions becoming subject to inheritance tax from 2027, as highlighted by a study from Charles Stanley Direct. A recent poll indicates that over 26% of investors plan to take money out of their pension pots "as early as possible" to employ it in a more tax-efficient manner, reports Birmingham Live.
He emphasised the need for careful planning: "Decisions made without forensic attention to detail and consideration of all long-term outcomes can lead to unfortunate consequences in retirement." Morgan pointed out: "The Labour Party Chancellor's decision to include pensions within the inheritance tax umbrella is affecting investor behaviour already, two years before the changes come into effect.
RETIREMENT SAVINGS INHERITANCE TAX PENIONS FINANCIAL PLANNING TAXATION
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