The government’s plans to bring unspent pension pots into scope of inheritance tax (IHT) has prompted many savers to consider re-evaluating their wealth transfer strategies and retirement plans, according to Standard Life.

Its research revealed a ‘post-Budget shift’, which highlighted tension between meeting long-term saving goals and reducing potential IHT charges.

Almost a third (31 per cent) of those surveyed were considering gifting money to family members more regularly to try and minimise future IHT liabilities on their pension savings.

Meanwhile, 21 per cent were thinking about purchasing an annuity in retirement to better navigate potential complications from IHT by drawing an income rather than leaving their pension untouched.

Three in 10 (30 per cent) respondents were considering professional advice to help navigate the changes, while a further 25 per cent were planning to engage with their pension provider.

Standard Life stated that this may reflect an increasing awareness post-Budget of the importance of informed decision making when navigating the complexities of retirement and inheritance planning.

Commenting on the findings, Standard Life retirement savings director, Mike Ambery, said: “Following the recent Budget, many individuals are reviewing their options to ensure their retirement plans align with their personal and family goals.

“While it’s natural to consider how to minimise IHT liability through strategies like increased gifting, it’s important that people consider their own retirement incomes and remember that pensions need to last for the whole of retirement.

“It’s positive to see that so many are considering seeking financial advice. These complex decisions almost always benefit from professional help to ensure the right balance is struck between mitigating IHT and securing ongoing financial wellbeing in later life.”

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