Bringing pensions into IHT – and why it’s reshaping platform expectations

The biggest shift in decades

When pensions fall inside the estate for IHT purposes, everything changes. As advisers will now know, this isn’t simply a tweak to the death benefit rules; it fundamentally alters long‑established retirement and estate planning strategies.

During our Q4 2025 national roadshows we saw around 1,000 advisers from Aberdeen to Bournemouth and the feedback* was striking. 95% of advisers told us they’re concerned about the IHT changes to pensions (and the potential for double taxation when death occurs over 75). They also expect two thirds of their clients to be impacted and require estate planning advice. That’s an extraordinary level of exposure across all client banks.

This isn’t just a high-net-worth problem. Many Baby Boomers and Gen X clients now fall into the new IHT danger zone without even realising it. A combination of frozen IHT allowances, rising property values, defined benefit transfers from a decade ago, ISA growth, and strong market performance mean plenty of clients who would never have dreamt about having an IHT problem are now sitting on estates that will be caught in the IHT net from 2027. This means that ‘thousands’ of clients’ plans may need to change.

A catalyst for deeper client conversations

These IHT changes create an opening for advisers to play a more influential role. Clients will need clear, confident guidance to help them rethink what their money is for, how to use their wealth effectively during their lifetime, and how to continue to pass it on to the next generation tax efficiently.

The challenge isn’t only tax. It’s behaviour. Clients who have spent years saving may be reluctant to start spending or worry about gifting money in case they might need it. Advisers now face the task of unpicking long held beliefs and reframing how people use their wealth in later life.

Advisers are uniquely placed to provide this behavioural coaching. But being able to focus on this and deliver it well requires a platform that supports both the technical and emotional sides of planning.

Turning risk into opportunity

Advisers now have a natural catalyst for deeper planning conversations. The scale of the policy change means clients will rely on their advisers to help them navigate unfamiliar decisions and avoid unnecessary tax exposure. Some of these conversations will be new territory for many clients and could be a challenge.

To deliver that support, advisers need the right technology behind them. Platforms are no longer passive administration engines – they’re central to tax planning, behavioural coaching, and demonstrating long‑term value.

The shift coming in 2027 is significant, but handled well, it’s also an opportunity to reinforce your role, strengthen your client relationships, evidence the value you add, and position your business for the future. The planning work starts now, and choosing the right platform will be one of the most important decisions you make.

Turn this advice risk into the opportunity it deserves. All parties will be better off for it.

Read our platform brochure for more information on the changing landscape and how we can help.