Government confirms unspent pensions to be included in IHT from 2027

The UK’s ‘great wealth transfer’ will see an estimated £5.5trn to £7trn passed down the generations in the next 30 years. As money, property and assets are passed on through inheritance, gifts and estate transfers, it is important to understand what this will mean for you. 

Baby boomers (born 1946–1964) control more than half¹ of the UK’s wealth. Mostly, they are financially comfortable, though may be worried about their children or grandchildren. The key is to start the conversation with family members early. This means taking a proactive approach to financial planning – securing your legacy will bring peace of mind. 

The first beneficiaries of the great wealth transfer are likely to be Generation X (born 1965–1980). Typically, this group is time poor, with a mortgage and multiple dependants to look after. For Gen X, thinking about the great wealth transfer might not be a priority, but seeking advice now with retirement, general financial planning and starting conversations with your parents, can save you a lot of time and stress later. Advice to simplify your decisions, reduce debt, invest wisely, understand taxes, tune into estate planning and prioritise long-term goals to manage inherited wealth responsibly, and with confidence, will prove advantageous. 

Millennials (1981–1996) typically have lower wealth levels than older generations but are highly motivated to improve their financial future. To build confidence and prepare a solid financial plan for the next 30 years (and beyond), it is a good idea to start working with us early, so you’re well-equipped to deal with what’s coming your way. 

Whatever life stage you’re at, planning early and seeking advice will help you embrace the future with confidence. We can help you navigate the great wealth transfer. 

¹Vanguard 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The value of your investments (and any income from them) can go down as well as up.