economy
Pension savers warned against 'costly and irreversible mistake' ahead of inheritance tax changes
Pensioners warned of TOUGH WINTER as energy bills to rise to three-year HIGH under Andy Burnham
TL;DR
- Consolidating pension pots before April 2027 inheritance tax changes could result in significant financial losses.
- Risks include higher fees, loss of guaranteed annuity rates, and the potential to lose the right to access funds at 55.
- The government is increasing the minimum pension age to 57 in 2028, which could delay retirement for those who consolidate.
- Consolidation might mean missing out on beneficial features like protected lower retirement ages and enhanced tax-free cash.
- A surge in consolidation requests could overwhelm pension providers, causing delays and administrative issues.
- Families could face unexpected inheritance tax bills if pension pots are missed during estate settlement.