Originally published: Financial Planning Today, 11 September 2026
One in five retired people expect their estates to be hit with a IHT bill once the new rules are in place from next April, according to a new study of the market.
Research also found that retired people are now gifting more of their money and spending more as concerns about Inheritance Tax (IHT) bills grow, according to the research.
Despite the changing Financial Planning trends, many retired people have a poor grasp on the Inheritance Tax rules, according to the research study by savings provider Investec Save carried out in July.
The company’s research study found that one in five retired adults expect their estate to be hit with an IHT bill when they or their partner die and many are already action to minimise any future liabilities.
According to Investec Save analysis, government data suggests IHT receipts are forecast to be £9bn in the 2025/26 tax year and are projected to rise to £14.5bn by the 2030/31 tax year.
The addition of unused defined contribution pension funds in estates from April 2027 is expected to result in bigger IHT bills for 152,700 estates by the 2029/30 tax year.
Investec Save’s research uncovered that IHT worries were causing a “major impact” on retired people’s Financial Planning. Around a quarter (23%) say they will gift more money now in order to reduce potential IHT bills while 15% say they are spending more to reduce the value of their estate.
Around one in 20 say they are actively spending the kids’ inheritance.
The study also reveals confusion about the tax rules. Nearly half (44%) say they will gift what they want, when they want, while nearly one in three (31%) are unaware of the seven-year rule for potentially exempt transfers.
Just one in 20 questioned say they keep details on gifts while more than half (54%) say tax laws do not dictate their gifting. More than two out of five (43%) are not aware of the annual £3,000 gift allowance while more than three out of four (78%) do not regularly review their will or financial plans in response to law changes.
Investec Save commissioned independent research agency Pureprofile to interview 1,000 retired people with the sample weighted to represent the demographic profile of the UK. The research was conducted between 8 July and 15 July 2026.
