Most Brits remain oblivious to major pension changes one year before they come into effect, new research suggests. Nine in 10 (89%) UK adults have "little or no awareness" of the upcoming inheritance tax (IHT) pension changes, according to experts at Standard Life. The firm added that just one in seven members of Generation X - people born between 1965 and 1980 - understand how IHT works, despite "being the generation most likely to currently be dealing with inheritance issues".

Moreover, specialists report that 30% of UK adults think their estate will exceed the IHT threshold. The survey was conducted among 2,000 British adults in February. In April 2027, most unused pension funds and death benefits will count towards the total taxable value of an estate, as the current exemption is scrapped.

In addition, pensions will no longer be an automatic "outside of estate" asset used for inheritance tax planning, and the standard IHT rate of 40% will be charged on any part of the estate exceeding the combined nil rate bands.

Neil Jones, tax and estate planning specialist at Standard Life, said: "With the clock ticking on the final year before pensions fall within the scope of inheritance tax (IHT), it's concerning, though not surprising, that awareness of the change remains so low.

"Most estates currently fall below the thresholds for paying IHT, which can be up to £1million for a surviving spouse with a home, so individuals and their families often only engage with IHT when they have to."

He added: "But by 2030, around one in ten estates are expected to exceed the threshold, so IHT will be something far more people will need to understand and plan for."

Mr Jones highlighted that £5.5trillion is expected to pass between generations in the next 30 years, and many people who never anticipated facing IHT may soon find themselves navigating complex financial and estate planning decisions.

He added: "The pensions and wider industry have a key role in offering clarity on the tax rules, practical guidance, and the insight individuals need to manage their estates effectively.

"Professional financial advisers and estate planners play a crucial role in helping families understand how they might be affected by IHT and creating taxefficient plans."

Ms Reeves said in her 2025 Budget speech that she believes "a fair society is one where the wealthiest pay their fair share".

She added: "I increased taxes last year on private equity, private schools and private jets. I abolished the non-dom tax regime - and this year I will make two changes to cap trust charges and prevent avoidance.

"I reformed inheritance tax on agricultural and business assets, and this year I am aligning those reforms with wider inheritance tax rules by allowing the transfer of the 100% relief allowance between spouses, balancing the taxation of these valuable assets with the realities of family life.

"In this Budget, I will take further steps to deal with a longstanding source of wealth inequality in our country."