14 July 2026
New research from NextWealth and Quilter finds that forthcoming pension inheritance tax reforms are already placing pressure on advice firms, as advisers bring forward complex, time‑intensive conversations well ahead of the April 2027 deadline.
The findings are based on eight in-depth interviews with financial advisers, an outsourced compliance specialist and behavioural and emotional intelligence specialists, conducted in March 2026.
It shows that with implementation being less than a year away, advisers are dealing with client hesitation, emotional reactions and delayed decision‑making that are increasing both workload and risk. What was once a relatively stable area of planning has turned into one of the most disruptive changes advisers have faced in years.
Inaction is becoming a growing issue for advice firms too. In practice, this is narrowing options and compressing decisions that rely on time.
The research identifies four key pressures emerging in advice firms:
- Legacy and estate planning conversations that may have been deferred for years now need to be revisited and documented.
- Large projected tax figures are triggering emotional responses that require careful reframing, often over multiple meetings.
- Firms are facing rising capacity and compliance strain as routine reviews turn into extended, judgement‑heavy planning processes.
- The risk of future challenge from family members who haven’t previously been part of the discussion.
Advisers interviewed for the paper describe situations where clients’ initial response to potential tax liabilities is to cut back spending unnecessarily or delay retirement.
In each case, advisers report needing additional meetings to ensure understanding, evidence decision‑making and balance competing risks, not just for the client, but for those who will ultimately inherit.
The paper also highlights the compliance challenge this creates. Decisions to delay action are not neutral, and advisers are increasingly conscious of how those choices may be judged in hindsight if outcomes deteriorate after April 2027. Where beneficiaries feel surprised or disadvantaged, firms also face a heightened risk of complaint, dispute and assets ‘walking out the door’ as wealth transfers to the next generation.
As a result, many firms are adapting their advice processes, revisiting historic plans, surfacing deferred discussions and placing greater emphasis on documenting client understanding and involving family members earlier where appropriate.
What were once straightforward assumptions about pensions as a legacy asset are now being reassessed across significant proportions of adviser client banks.
The research concludes that while there is still time to act, the window for low‑disruption planning is closing. Strategies such as gifting, restructuring assets or changing drawdown approaches cannot be compressed indefinitely, and delays increase the risk of sub‑optimal outcomes for both clients and firms.
Roddy Munro, head of technical sales at Quilter, said:
“This change fundamentally alters how pensions are treated on death, and advisers are already seeing the consequences in real client behaviour. The biggest risk is not necessarily making the wrong decision, but doing nothing at all.
“When clients delay because the change feels far away, or react to headline figures without context, their options can narrow quickly. For advisers, that also raises questions about timing, judgement and how decisions are evidenced. The role of advice here is not just technical, but helping clients make decisions they understand and are comfortable with, before time becomes a constraint.”
Heather Hopkins, founder and CEO of NextWealth, said:
“Alongside the challenges, advisers describe a rare moment where client engagement, planning need and the value of advice are coming together. Clients who may previously have viewed pensions, retirement, tax and estate planning as separate issues are now seeing the benefit of a joined-up financial plan.
"This is an opportunity not only to improve client outcomes but also to strengthen relationships across generations and demonstrate the value of advice at a time when it matters most."
