7 pension planning tips to strengthen your retirement and estate plans

With significant changes to the inheritance tax treatment of pensions from April 2027, many people may need to reassess how pensions fit within their retirement and estate planning arrangements.

Here are seven practical pension planning tips that could help you maximise your retirement savings and improve your long-term financial resilience.

1. Start planning now

Planning early gives your investments longer to potentially benefit from growth.

Small increases in contributions made consistently over many years can make a meaningful difference to the size of your retirement fund. If retirement still feels distant, that's often the best time to begin reviewing your plans.

2. Utilise available tax relief

Despite the upcoming changes, pensions remain one of the most tax-efficient ways to save for retirement.

Pension contributions usually receive tax relief, helping to boost the value of your savings, and depending on your circumstances, you may also be able to benefit from employer contributions. For some employees, salary sacrifice arrangements may further improve the overall efficiency of retirement saving.

Carrying out a regular review of the value of contributions can help ensure you're making the most of available allowances and opportunities.

3. Keep track of old pensions

Many people accumulate multiple pension pots throughout their career as they change jobs or employers, keeping track of these arrangements is important.

Forgotten pensions could represent a valuable part of your retirement income, while having several small pots can sometimes make managing your retirement savings more complicated.

A pension review may help identify whether pension consolidation could improve visibility, control and efficiency, although any decision should be based on your individual circumstances and objectives.

With pension tracing tools and services becoming more accessible, it is increasingly possible to identify older arrangements and build a clearer picture of your overall retirement savings.

4. Check your retirement income expectations

One of the most common retirement planning mistakes is assuming your pension will provide the lifestyle you want without reviewing the numbers.

Take time to consider:

• When you would like to retire
• The lifestyle you hope to enjoy
• Your expected expenditure in retirement
• Other income sources you may have

Going through a cashflow modelling exercise to review and stress test your retirement planning could be invaluable. The models built will help provide you with an understanding on whether your current savings trajectory and pension provision aligns with your goals can help avoid unwelcome surprises later.

5. Regularly review your investment strategy

As your circumstances, objectives and retirement timeframe evolve, your investment strategy may need to change as well.

The appropriate investment strategy for someone 25 years from retirement may look very different from that of someone approaching retirement. Regular reviews can help ensure your investment approach continues to reflect your objectives, time horizon and attitude to risk.

6. Keep beneficiary nominations up to date

Pension death benefits often sit outside your will, meaning your pension provider may rely on your nominated beneficiaries when determining who should receive benefits. Life changes such as marriage, divorce, children or changes in family circumstances can all affect whether existing nominations remain appropriate.

Given the proposed inheritance tax changes affecting pensions from April 2027, reviewing death benefit nominations is an increasingly important element of wider financial and estate planning as spousal gifts remain IHT free. Depending on individual circumstances, benefits paid to beneficiaries other than a spouse or civil partner may give rise to inheritance tax liabilities under the new rules.

7. View pensions as part of a wider wealth plan

Your pension should not be considered in isolation. Effective financial planning often involves coordinating pensions alongside investments, savings, tax planning, estate planning and succession objectives.

The inheritance tax changes are reinforcing the importance of joined-up planning, particularly for those with significant pension wealth or wider family assets. Reviewing how pensions fit within your broader financial strategy can help ensure your plans remain efficient, flexible and aligned with your long-term objectives.

We’re here to help

There is no single pension strategy that is right for everyone. The most appropriate approach depends on your circumstances, retirement objectives, attitude to risk and wider financial position.

If you have any questions or would like to review your retirement planning strategy, please get in touch with a member of our Wealth Management team.

Important Information

1. This article does not constitute financial advice
2. Pension rules, including tax and death‑benefit rules, may change.
3. You should seek regulated financial advice before making any decisions relating to pension or retirement income.