Nearly two in three adults (64%) are in the dark about major IHT changes affecting pensions from April, according to a new survey of more than 2,000 consumers.
The study also found that only 18% of consumers are confident they will be able to pass on wealth without a substantial tax bill.
A survey carried out by polling firm YouGov for wealth manager and SIPP provider Mattioli Woods found significant gaps in UK adults' understanding of imminent changes to the tax system.
The survey found:
- 64% of UK adults were unaware of Inheritance Tax (IHT) changes affecting most unused pension funds from April
- Just 18% feel confident they can pass on wealth to their families in the most tax-efficient way
- Only 25% feel confident they will have enough money to enjoy a good standard of living in retirement, with a figure of just 21% among women
- Awareness of stealth tax is very low, with just 20% understanding what the term means
Mattioli Woods said awareness of the changes was particularly low among those aged 50 to 64, with 59% unaware of the forthcoming legislation.
There is also limited understanding of wider tax changes and terminology. Just one in five (20%) respondents have heard of stealth tax and understand what it means, while 29% have never heard of the term.
The survey found concerns come against a backdrop of wider financial uncertainty following the 2026 Autumn Budget.
More than half (53%) of respondents expect their household financial situation to worsen over the next 12 months, compared with just 11% who believe it will improve. More than one in four (26%) are considering reducing household spending as a direct result of the Budget.
Women are particularly pessimistic about their financial prospects, with 55% expecting their household finances to deteriorate over the next year. The Budget is also prompting some to reconsider their wider financial arrangements, with 13% considering reviewing their ISA or other tax-efficient savings arrangements, while 9% are reconsidering how they divide their money between cash savings and investments.
When asked which areas they would most like professional financial advice on, pensions and planning for retirement emerged as the top priority, followed by reviewing overall finances and investing for long-term growth.
Inheritance Tax and passing on money or assets, securing better returns on cash savings and reducing the amount of tax currently paid were also important areas for consumers.
Amit Joshi, managing director of Wealth at Mattioli Woods, said: “The research highlights a significant gap between the financial decisions people need to make and their confidence in making them.
"With almost two-thirds of UK adults unaware of forthcoming Inheritance Tax changes affecting some pension funds, and fewer than one in five confident they can pass on wealth in the most tax-efficient way, there is a real risk that people are not adequately prepared for the impact of changes to the tax system."
In June this year, Mattioli Woods integrated Kingswood Group under a unified brand, following its October 2025 merger. The combined business oversees than 30,000 clients, with over 200 financial advisers across more than 40 UK offices.
• Research was carried out by YouGov with 2,100 UK adults between 29 and 30 October 2026.