Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

There’s considerable potential for using pensions to maximise inheritances or reduce IHT

Not many people realise that a pension can be a more efficient asset to pass on as an inheritance than property or other savings.

Even if you have made a will recently the chances of your solicitor giving real guidance on how to use a pension fund to maximise inheritances are very slim. After all they are not pensions specialists and are terrified about straying into giving regulated financial advice.

If the last time you looked at inheritance planning was pre-2015 then pensions would not have been at the top of the agenda as any remaining pension fund on death, post age 75, was taxed at a whopping 55%.

Thanks to the “pension freedoms” introduced in 2015 that 55% tax charge has gone and, with a little planning, passing on the pension fund can be hugely tax efficient. The pension fund is free of Inheritance Tax and will be taxed at the marginal tax rate of the heir receiving it.

How about grandchildren who are not yet earning? They could take out the whole personal allowance of £12,500 each year entirely tax free. Or it could become the pension fund of your heirs and only be taxed when they get to pension age and start withdrawals.

The possibilities are endless but only if you are prepared to pay attention and consider all the opportunities.

You probably have various types of assets, property, investments, savings, pension funds, etc. How about asking yourself the question:

“Which assets should I spend or draw down on first”?

With the proper planning the chances are it will not be the pension plan.

If you would like an Inheritance Review so that you can be sure that you are not missing out on some very effective pension linked strategies phone or text me, Richard, on 07770 575122 and let’s have a conversation.

PS. If you are not yet at pension age how sure are you that your parents understand all this? Talking about money is never easy but not talking about it could leave HMRC better off and you worse off. Is that really what they want?


This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

Share Button

Leave a Reply

Your email address will not be published.

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.

Sign up to my mailing list

Fearless Retirement

Register to be in with a chance of receiving one of 25 complimentary copies of my book “Fearless Retirement


Need more information?

Use the form below to contact me and I’ll get back to you as soon as possible.

    Your Name (required)

    Your Email (required)

    Your telephone number:


    Any particular problems/ issues?

    Read my featured articles on money success here;