I’m sorry Jason, I don’t think your observation is any more valid than the money in the photo, it may be money but no one else observes it.

Here’s what benefit consultants have got on their mind

For decades savers and advisers took it as an article of faith that pensions sat outside the crosshairs of inheritance tax. But from 6 April 2027, this assumption will no longer be true.

Did they? I am a saver and I’ve been an adviser over the decades but until it was withdrawn, I’d never considered how my estate was going to be inflated next April.

If this is right, then I’m a Dutchman (I’d quite like to be a Dutchman , come and think it, they have pensions that behave as pensions). Any way this is what makes me turn Dutch

Pensions are still central to retirement saving, but their role as a vehicle for passing on wealth is potentially changing.

When I started pension saving plans (s226) back in the early eighties, the idea was that a pension came at the other end. The amount could either come “unit-linked” where the annuity could be bought on the open market but was pretty rubbish or it could be bought on a “with profits basis” where the annuity was usually guaranteed from day one.

There was never a chance that anything would be left but the tax-free cash if that had not been spent. Most of the time people bought the highest annuity they could get, level and it died with you , second death if you were married , knew what you were doing and you still liked your wife (women didn’t do much saving through me).

It is true we were  very assiduous to put these policies in trust. It made it look like we cared – but I don’t think we did. We had compliance officers and this conversation diverted discussion about how much we were taking in commission.

I am sure that things have moved on when I was last personal pensions, in 2005.  I’m sure that in 2012, pension salesmen had to start selling something else. Perhaps it was then when the importance of inheritance planning took hold. But it never got as far as my thick cranium let alone inside. Little did I know of the business I was generating for the next generation

This adds up to more complexity, and a lot more time spent on administration, particularly where individuals hold multiple pension arrangements or have several beneficiaries.

But despite of tax planners losing an opportunity to “add value”, April 6th 2027 will create a lot more work for advisers and benefit consultants

Under these proposals, schemes will play a more active role in the inheritance tax process. This could include providing information to personal representatives to support IHT calculations and, in some circumstances, making payments directly from pension benefits before funds are distributed.

It looks like my carefully complicated trusts with nominated beneficiaries beautifully managed (forty years ago) are now giving more work for advisers (and more fees).

Further good news is that DC pension schemes will have other beneficiaries.

We must not overlook the fact that these reforms will place a significant operational burden on schemes. Data quality and information sharing will become more important and in turn more resource-intensive, with schemes needing to work more closely with advisers, executors and personal representatives.

It never ceases to amaze me the delight that advisers and benefit consultants take from increasing complexity!