Stop the Double Taxation of Pensions: Protect Pension Funds & Death Benefits before 2027

From April 2027, the Government is planning to introduce double taxation of pensions, by applying Inheritance Tax (IHT) as well as Income Tax on pension funds and death benefits. This change means that when someone dies, their beneficiaries could be forced to pay both taxes on the same savings.

We believe this creates a disproportionate and unfair double taxation of pensions, with some families potentially facing tax rates as high as 67%.

Why this matters

For decades, the Government has encouraged people to take responsibility for their retirement by saving into a pension. Pensions are the simplest and most effective way for the majority of people to build an income for later life. But these new rules send the wrong message. Instead of rewarding sensible saving, they penalise it through the double taxation of pensions.

Many people want to leave any remaining pension fund to their loved ones – often children or grandchildren – but the combination of IHT and Income Tax could strip away most of what’s left. This form of double taxation of pensions is not just a personal financial blow; it risks undermining trust in the pension system itself.

If saving into a pension becomes seen as a tax trap rather than a safe and responsible choice, fewer people may contribute – putting more pressure on future generations and the state.

What needs to change

We are calling on the Government to rethink this policy and protect pension savings from being unfairly taxed twice. A pension is not a luxury; it is the backbone of retirement planning for millions of people. The double taxation of pensions is wrong, and it will hurt the very people who try to do the right thing.

What you can do

Support the petition to stop the double taxation of pensions and death benefits. Together, we can send a clear message to the Government:

• Pensions should provide security, not punishment.
• Savings should not be taxed twice.
• Families should not lose up to 67% of their inheritance

The introduction of Inheritance Tax on pension funds and death benefits from April 2027 risks creating a double taxation of pensions. This unfair approach could see families losing up to 67% of their inheritance, punishing those who have worked hard and saved responsibly for retirement. It also risks undermining trust in the pension system itself – the very system the Government relies on to encourage financial independence in later life.

It’s vital that we send a strong message to policymakers. The petition already has over 10,000 signatures, but we need 100,000 to make an impact and ensure the Government listens. By adding your name, you’ll help protect pensions from unfair double taxation and safeguard retirement savings for future generations.

At KGJ Insurance and Financial Advisers, we believe pensions should provide security, not penalties. If you are concerned about how these changes might affect you or your loved ones, we are here to help.

Contact us today to discuss your options. Our expert advisers can guide you through the potential impact, explain strategies to protect your beneficiaries, and provide a tailored pension review to give you peace of mind.

SIGN THE PETITION