More than three in four financial advisers (77%) expect a surge in workload due to the imposition of IHT on unused pensions from April 2027, according to a new survey.

The results back up recent research by others which suggests that worried clients are seeking advice in growing numbers to avoid a 40% IHT tax charge on a large part of their estates on their demise.

According to the Standard Life survey, four in ten adviser (40%) believe clients will need a "significant review" of their financial plans.

The rush for IHT advice appears to have caught some advisers on the hop.

Some 57% say they need to "refresh or improve" their knowledge on alternative strategies related to IHT planning. Nearly half (48%) of advisers say clients have asked about reducing or stopping pension contributions, a decision that requires careful handling.

Standard Life says that adviser workloads are “set to rocket” in the run up to pension IHT changes set for 6 April 2027. Advisers expect an average 20% increase in workload.

The IHT changes, announced in last year’s Budget by Chancellor Rachel Reeves, are designed to discourage the use of pensions as a wealth transfer tool, says Standard Life. Using IHT allowances to transfer wealth has been popular since the introduction of the Pension Freedoms in 2015.

Some 76% of advisers their clients are “concerned” about the upcoming IHT change and 30% report that these concerns are “very high.” 

For clients in decumulation, the change has turned planning assumptions “on its head” says Standard Life. As a result advisers are having to reassess retirement strategies and investigate alternative solutions for passing on wealth.

Warren Bright, head of retail intermediary and private client distribution at Standard Life, said: “The aftershock of the 2024 Budget announcement continues to be felt across the pensions industry as the reality of pensions coming into scope of IHT from April 2027 sinks in.

“What might appear to be a simple change is far from straightforward and advisers are at the sharp end, supporting their clients through the change. It’s clear from our research that advisers have an uphill challenge reviewing financial plans and making adjustments for those affected before the implementation date.”

• Research was conducted by Opinium on behalf of Standard Life among 200 IFAs from 5-12 November.