Households across the UK have been warned to avoid scammers trying to sell them bogus ways to avoid inheritance tax (IHT). These criminals claim that from April 2027, any money left in a defined contribution pension — workplace and private pensions — will be brought into IHT following your death.
Anyone contacted about this claim needs to be aware that it is totally false and this policy change is not being brought in.
Pension Changes Cause Confusion
Donna Walsh from Standard Life, one of the UK's largest pension providers, warned that the real pension changes coming in next year will cause confusion for people. She explained: “With these changes, people become uncertain and a little bit confused around what they can do, what will and will not happen. And that’s exactly the type of conditions that scammers are set to exploit.”
Warning Signs to Look Out For
The Pensions Regulator has warned people that cold calling about pensions is illegal, so anyone receiving calls should know it is immediately criminal. However, fraudsters also contact people via email and messages, so people should look out for the following phrases:
- Pension liberation
- Loan
- Loophole
- Savings advance
- One-off investment
- Cashback
These are all tell-tale signs that the contact is from a scammer.
Walsh adds: “The provider asks those questions to try to protect the saver, but the scammer is then coaching them on how to get through those. Our teams are trained to identify that.”
Expert Advice on Passing on Wealth
Mike Ambery of Standard Life commented: “Those with larger pots may be thinking about how best to pass on wealth, particularly where pensions could face inheritance tax and then income tax for beneficiaries. For some, that might involve longer-term planning or decisions about gifting, but there’s rarely a one-size-fits-all answer. What’s important is not to be rushed into action – especially if someone is pushing a ‘quick fix’, or playing on fear.”
