economy
Pension savers issued major warning
Brits saving towards their pension have been warned against making a "costly and irreversible mistake". Changes coming into force next April will see pensions fall within inheritance tax rules for the first time.
TL;DR
- Pension savers are warned against merging pots due to upcoming inheritance tax rules.
- From spring 2027, unused private pensions will be subject to inheritance tax.
- Merging pensions can result in higher fees and loss of beneficial features.
- Experts advise against consolidation, citing potential financial losses and administrative issues.
- Savers are urged to update their beneficiary information with pension providers.