William Bale, wealth manager at financial planning and investment management firm Tideway Wealth, told GB News that households should avoid making rushed decisions based solely on Budget rumours.
Here is what has been confirmed, what has reportedly been ruled out and what could still be announced.
CONFIRMED: Unused pensions to face inheritance tax
Most unused private pension funds will be included within a person’s estate for inheritance tax purposes from April 2027.
Mr Bale described this as “one of the most significant confirmed changes already on the horizon”.
He said: “This could influence retirement income planning for many families, particularly those who previously viewed pensions as an efficient way of passing wealth to future generations.”
The change will not affect only the wealthiest households. Someone with a relatively modest pension could face inheritance tax if their home, savings and other assets push the total value of their estate above the available thresholds.
Mr Bale warned that some retirees could respond by withdrawing more from their pensions than they need.
“There is a risk that some retirees may be tempted to draw pension benefits more aggressively than necessary in response to these changes, potentially reducing the sustainability of their retirement income later in life,” he said.
For example, someone could have an estate worth £300,000 and an unused pension containing £100,000.
Once the pension is included, the total estate would be worth £400,000. If only the standard £325,000 inheritance tax allowance applied, £75,000 could be taxable.
At the standard 40 per cent rate, this would produce an inheritance tax bill of £30,000.
This is a simplified example. Spouse exemptions, the additional allowance for qualifying family homes and other reliefs could reduce or remove the bill.
RUMOURED: Tax-free pension cash could be targeted
Most people can currently withdraw 25 per cent of their pension without paying tax, subject to a maximum tax-free lump sum of £268,275.
There has been repeated speculation that the Government could reduce this entitlement, although no change has been confirmed.
Mr Bale warned that the uncertainty itself could prompt people to access their pensions prematurely.
He said: “If the Government were to reduce this entitlement, it could have significant implications for those who have built retirement plans around the benefit, whether that is repaying a mortgage, supporting family members or funding major expenditure in retirement.”
However, withdrawing money before any announcement could create its own problems.
“The concern is that speculation alone could encourage people to make decisions about their pension savings before any changes have been confirmed,” Mr Bale said.
“Withdrawing money unnecessarily could leave them worse off in the longer term.”

