Almost two thirds (64%) of UK adults are unaware that some pension funds will become subject to inheritance tax (IHT) from April 2027, new research has found.

According to research commissioned by Mattioli Woods, there is widespread uncertainty around inheritance and retirement planning, raising concerns over how prepared households are for upcoming tax changes.

The wealth manager's survey of more than 2,100 adults, conducted by YouGov, found that just 18% of respondents said they were confident they would be able to pass on money or assets to family members in the most tax-efficient way. Awareness of the pension tax changes was particularly low among those aged 50 to 64, with 59% unaware of the planned legislation.

The research also found general concerns about retirement readiness. Only a quarter (25%) of respondents said they were confident they have, or will have, enough money to enjoy a comfortable retirement. Confidence was even lower among women (21%) and those aged 50 to 64 (24%), compared with 45% of over-65s.

Understanding of wider tax issues also appeared limited. Only one in five (20%) respondents said they had heard of the term "stealth tax" and understood its meaning, while 29% had never heard the phrase.

The findings come against a backdrop of growing concern over household finances following the 2026 Budget. More than half (53%) of those surveyed expect their financial position to worsen over the next 12 months, compared with just 11% who believe it will improve. More than a quarter (26%) said they were considering cutting household spending as a direct result of Budget measures.

Women were particularly pessimistic, with 55% expecting their finances to deteriorate over the coming year.

Pensions and retirement planning were the most common areas where respondents said they would welcome professional advice, followed by reviewing their overall finances and investing for long-term growth. IHT planning, improving returns on cash savings and reducing tax liabilities were also identified as priority areas.

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.

“This is particularly concerning when considered alongside the findings on retirement planning. Just one in four people feel confident they will have enough money to enjoy a good standard of living in retirement, falling to just 21% among women."

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