Standard Life warns that planned changes to inheritance tax treatment of unspent pension funds are undermining public faith in pensions. The retirement firm points to survey findings showing that about 22% of adults report having less trust in pensions after learning that unused pension pots will become liable for inheritance tax from spring 2027.
The issue relates to how death duties would apply to pension assets that are not used during an individual’s lifetime. Under the forthcoming rules, unspent pension pots are expected to face inheritance tax charges, which Standard Life says could affect how people view pension saving and planning for retirement.
The reporting centers on the impact of the policy change on attitudes rather than on new financial figures. The survey result is presented as an indicator of confidence, while the specific mechanics of the taxation change are linked to the implementation date in spring 2027. Overall, the coverage highlights a potential reputational and behavioural effect, with a smaller share of respondents saying their perception of pensions worsens once they understand the inheritance tax implications.
