One of these measures is to withdraw from their pension pots early; however, experts warn that this could trigger higher income tax bills and reduced pension security later in life.
Instead of making hasty withdrawals, households should carefully plan their estate strategy to reduce inheritance tax liability while ensuring they retain enough pension savings for retirement.".
As the 2027 deadline approaches, financial experts are urging pension holders to take action now to ensure they "maximise their retirement savings while mitigating unnecessary tax costs.
A spokesperson for the firm said: "Many people are understandably worried about how inheritance tax on pensions will be implemented, and some are looking to access their funds early before the changes take effect.
However, withdrawing a large lump sum could push retirees into a higher tax bracket, leading to an unnecessary tax hit.
