The new 'double tax' on inherited pensions
Fidelity looks at the mechanics of the confirmed change bringing unused pension pots into inheritance tax from April 2027, and the 'double tax' concern this raises. The illustrative maths: on £100 of pension money subject to 40% IHT, £60 remains. If death occurs after age 75, that £60 is then subject to the beneficiary's rate of income tax — potentially up to 45% — leaving as little as £33.
Not everyone will be affected, but for those who are, the pension-withdrawal strategy that made sense a decade ago may need a serious rethink. Fidelity's point is to plan early rather than react late.
Original commentary by Fidelity Adviser Solutions, published in the 2plan Wealth Management Newsletter, Edition 46 (December 2024). Tax rules can change and may already have done so since publication.Four key signs of a financial scam
2plan's practical checklist for spotting investment fraud: (1) if it sounds too good to be true, it is — genuine 'get rich quick' schemes would make everyone millionaires; (2) vague or unusual opportunity descriptions, heavy on jargon and headline figures but light on fundamentals, are a red flag; (3) pressure and urgency — 'act now or miss out' is a classic manipulation tactic; and (4) the opportunity being 'exclusive' or otherwise hard to verify.
The single most important defensive habit: if someone contacts you claiming to be your adviser or your bank, end the contact and reach out to them via a channel you've used before — never through a number or link in the message itself.
Original commentary by 2plan Wealth Management Ltd, Edition 46 (December 2024).Five financially smart ways to start 2025
Parmenion frames a start-of-year financial review as a natural companion to the standard New Year's resolutions — a chance to make sure your investments still match your longer-term goals, revisit portfolio balance, and update the plan as circumstances change. It's less dramatic than a gym membership and considerably more likely to still be paying dividends in July.
The recurring theme across the five points is talking to your adviser proactively when something in your life changes, rather than waiting for the annual review.
Original commentary by Parmenion Capital Partners, published in the 2plan Wealth Management Newsletter, Edition 46 (December 2024).Intergenerational wealth — the conversation to have
7IM's piece looks at the urgency of intergenerational wealth conversations as older generations plan to pass wealth to younger ones — a transfer that will be one of the largest in UK history over the next two decades. The technical structuring (trusts, wills, gifts, life policies) matters, but the piece argues the softer side matters more.
Passing wealth well means involving the family in the process, communicating your intentions and reasoning clearly, and — importantly — making sure the recipients have the financial understanding to make sensible decisions with what they'll inherit. Financial education for the next generation is as important as the tax planning.
Original commentary by 7IM (Seven Investment Management), published in the 2plan Wealth Management Newsletter, Edition 46 (December 2024). Inheritance tax raised £7bn in the year to October 2023 — source: Institute for Fiscal Studies.Autumn Budget 2024 — winners and losers
2plan's summary of the Autumn Budget covers the practical impacts most likely to affect households. Wage-related changes: the National Living Wage rose by 6.7% to £12.21/hour (worth up to £1,400 a year to a full-time worker) and the National Minimum Wage for 18-20 year olds jumped 16.3% to £10/hour. National Insurance for employees was not increased.
For pension savers and estate planners, the headline was of course the confirmed plan to bring most unused pension death benefits into IHT from April 2027 — which the newsletter's Fidelity piece covers in more detail.
Original commentary by 2plan Wealth Management Ltd, Edition 46 (December 2024). Budget announcements reflect Chancellor Rachel Reeves' Autumn Statement, October 2024.The need for protection with a mortgage
L&G looks at when mortgage-related life insurance is genuinely needed. It's not usually a legal requirement, and not every lender insists on it — but for most households with dependents, taking on a substantial mortgage without any protection creates a serious risk if the main earner is unable to work or dies.
L&G quote the average UK house price of £289,723 as at July 2024. With mortgages that size, even a modest term-life policy can be transformative for a family, and is often cheaper than clients expect. Worth reviewing at the same time you review the mortgage itself.
Original commentary by Legal & General, published in the 2plan Wealth Management Newsletter, Edition 46 (December 2024). UK average house price data cited from July 2024. The value and terms of any protection product depend on individual circumstances.Want the full detail?
The individual articles referenced above appear in full in the PDF version of the newsletter, along with charts, further examples, and adviser commentary. If any of the above prompts a question about your own circumstances, get in touch.