Research from Standard Life has highlighted how uncertainty surrounding the changes could make savers more vulnerable.
Here, we look at how inheritance tax rules are changing and how you can protect your pension against fraudsters.
High levels of concern around inheritance tax changes
Some 22% of UK adults say that they feel less confident about pensions as a result, while 54% are worried their beneficiaries could face a higher inheritance tax bill when they die.
Mike Ambery, retirement savings director at Standard Life, said: 'It’s understandable that many people are reassessing how their retirement savings are used and passed on. However, scammers thrive on fear and uncertainty – when people feel unsettled or rushed, they’re more likely to fall victim to a scam.'
He added: 'It’s worth being aware that these changes won’t affect everyone in the same way – and that’s something scammers could be quick to exploit. For many people, their pension savings simply won’t be large enough to fall into inheritance tax at all, but fraudsters may still try to convince them they need to act urgently.'
What the new rules mean for your pensions
Government estimates suggest that the changes will result in 10,500 estates paying inheritance tax for the first time in 2027-28, while 38,500 more will see their bills increase (by around £34,000 on average).
However, most estates will continue to fall below the inheritance tax thresholds. The proportion of UK deaths resulting in an inheritance tax bill will rise from 5% to around 10% by 2029-30.
Find out more:Pension withdrawals on the rise
The changes are already leading to more people accessing their retirement savings and reviewing how their money can be passed on to loved ones.
Our recent survey of Which? members found that one in seven are already spending more of their pension in anticipation of the changes. And almost half of respondents said they plan to do the same.
Pension savers withdrew £3.9bn in lump sums from DC pensions between October 2024 (when the inheritance tax changes were first announced) and October 2025 – an increase of £868m on the previous 12-month period.
More money being released from pensions and uncertainty about how the rules apply will only encourage criminals to devise new ways to target your cash.
Find out more:4 pension scam warning signs
Here are the key red flags to watch out for:
Being contacted out of the blue A company you’re not sure about Promise of early access to your pensions Being asked to make a quick decisionsource https://www.which.co.uk/news/article/why-inheritance-tax-changes-could-open-the-door-to-scammers-aE5jh5X2cttd