A fifth of HNW individuals aged 55 and over (19%) are unaware that unused private pensions will be liable for inheritance tax from April 2027.

Half, 51%, are aware that changes are taking place, but don't know the exact details of what this will mean.

A quarter (25%) of 55+ year olds, are actively not taking any action to account for the pension changes, according to the research from Charles Stanley.

Some 13% have not taken any action yet but plan to, while 8% do not know what they can do to account for the upcoming changes.

For those who are taking action, 15% say they are spending money from their pension to reduce their IHT liability, while 14% say they are more focused on alternative tax-efficient savings vehicles (such as ISAs).

Some 13% say they have changed their financial plans to reduce the possible IHT burden they face, and another 13% have sought professional advice on what they should do.

More generally when thinking about the pension changes for 2027, sentiment among those aged 55 and above is largely negative. 32% say they feel disappointed by the pension changes coming into effect, while 23% feel frustrated and 20% feel disillusioned.

Conversely, 10% feel confident about the pension changes, and only 8% said they felt prepared. A further 8% said they are unbothered when thinking about the pension changes coming into effect.

Harry Bell, director of Financial Planning at Charles Stanley, said: “Pensions are among the most valuable assets people hold, yet many remain unaware of how upcoming reforms could affect their estate planning. From April 2027, unused pension pots will fall within the scope of inheritance tax, which could significantly increase liabilities for families.

“While there’s no need for knee-jerk reactions, understanding the implications and planning ahead is essential. These changes alter long-standing assumptions about retirement planning, so taking advice now is crucial to avoid unexpected tax bills and ensure your wealth supports both your income needs and your legacy”.

• The research was conducted by Censuswide, among a sample of 2,001 28+ HNWI (defined as £100k ‘personal’ income or £100k investable assets, and/or £200k household income). The data was collected between 1 and 8 September.