Wealthy retirees are reported to be spending chunks of their pension pots on lavish holidays for their families rather than leave heirs to face the Government’s planned new inheritance tax. One financialadvisor said he and his colleagues had seen a “tremendous increase” in withdrawals for the purpose of spending or gifting part of their pots. One of his older clients wanted to treat his family to a Florida trip costing some £55,000. The surge in spending is said to have been touched off by Chancellor Rachel Reeves’ move to make unspent amounts in money purchase pensions liable for 40% IHT from April 2027.
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