Will The Inheritance Tax Changes Steal Your Pension From Your Family?

1 - RETIREMENT CALCULATOR - https://financialeducation.co.uk/reti... - Use our interactive model to help you work out how much you need and how much you can spend in retirement. 2 - EQUITY RELEASE CALCULATOR - https://financialeducation.co.uk/how-... - More and more people are using equity release to fund their retirement. Use the free calculator to see how much you could borrow. 3 - RETIREMENT PLANNING CHECKLIST - https://financialeducation.co.uk/reti... - Download my free checklist and make sure you have not missed any of the big retirement decisions, deadlines or details. The Inheritance Tax "Scare" Is Overblown: Here Is The Real Truth Fewer than 1 in 20 UK estates pay any inheritance tax at all, and the average estate that does pay hands over about 13% of its value, not the 40% headline everyone quotes. The 40% rate is a sticker price that only applies to the slice above your allowances, and a married couple leaving a home to their children can pass on close to £1,000,000 with nothing owed. If you are asking whether you have to pay inheritance tax, how much you can inherit tax free, or whether your pension will be taxed from 2027, this video walks through the real numbers. The people who actually lose money to this tax are often the ones who gave it away out of fear, when they were never going to pay a penny. DO YOU HAVE TO PAY INHERITANCE TAX? Of 683,000 people who died in the UK in the last full year reported, only 31,500 estates paid inheritance tax, a ratio that has barely moved since 2007. Everyone gets a £325,000 nil-rate band, plus a further £175,000 residence nil-rate band when leaving a home to children or grandchildren. HOW CAN A COUPLE PASS ON £1 MILLION TAX FREE? A married couple combining two £325,000 allowances and two £175,000 residence allowances reaches £1,000,000, so an estate of £900,000 made up of a house, savings and a pension owes zero. Anything left to a spouse or civil partner passes free of inheritance tax entirely, however large, which is why the tax rarely bites on the first death. WHAT CHANGES FOR PENSIONS IN 2027? From April 2027 any unspent pension money starts counting inside your estate, and a Penfold survey this month found 74% of savers did not know this was coming. The Treasury expects around 10,500 estates to pay who never would have, with another 38,500 facing an average increase of about £34,000. RESOURCES HMRC Inheritance Tax: https://www.gov.uk/inheritance-tax Office for Budget Responsibility receipts forecast: https://ifs.org.uk ABOUT ME My name is Saq Hussain, and I have over 25 years of experience in the UK pension industry, helping to shape pension and retirement strategies for some of the world's largest organisations. BACKGROUND & ROLES Strategic Advisor: EY (Ernst & Young) Pensions Former Director: UK Head of DC Pensions, Benefits & Wellbeing at PwC Pension & Benefits Consultant: Aon, Willis Towers Watson and KPMG PRESS CITATIONS The Daily Telegraph: https://www.pressreader.com/uk/the-da... Financial Times (FT Adviser): https://www.ftadviser.com/2014/04/15/... CONNECT WITH ME Retirement & Pensions: https://financialeducation.co.uk Help & Advice: https://helpandadvice.co.uk Later Life Care Planning: https://ukcareguide.co.uk LinkedIn:   / saq-hussain   LISTEN ON PODCAST Spotify: https://open.spotify.com/show/6786MNM... Apple Podcasts: https://podcasts.apple.com/gb/podcast... DISCLAIMER: For educational purposes only. Not regulated financial advice. Consult a qualified advisor before making pension decisions.