Britons face a pension nightmare as the Government’s planned inheritance tax (IHT) shake-up threatens to devastate retirement savings, experts have warned.

From April 2027, unused pensions could be hit with IHT under controversial new proposals—sparking outrage across the financial sector. Industry professionals say the move is a “looming disaster” that will hammer hard-working savers and leave families with colossal tax bills.

In a damning new report, leading pension specialists at WBR Group reveal near-universal opposition to the changes, which were announced in the Chancellor Rachel Reeves’s Autumn Budget.

A staggering 90.41% of industry experts surveyed believe the new tax is both unfair and retrospective, punishing those who have responsibly built up their pension pots.

WBR Group’s Caitlin Southall pulled no punches, branding the proposed changes “a grave injustice.”

She warned: “The introduction of IHT on pensions is not just concerning—it is a disaster waiting to happen. These plans will wreak havoc on the pensions industry and shatter the financial security of thousands.

“We urge the Government to scrap these draconian measures and work with industry experts to create a fairer, more balanced solution that truly supports pension savers.”

One devastated respondent shared the heartbreaking impact the changes will have on their family. They explained: “For years, our strategy has been to leave our home and pension to our son so he can care for his severely disabled brother. Now, our IHT bill has rocketed from £100,000 to £800,000.

“We simply don’t have time to make alternative plans. If our son cannot afford to be a full-time carer, his brother will be forced into care—where he will be miserable. The cost will ultimately fall on the taxpayer.”

The backlash is growing, with a shocking 97.26% of respondents agreeing the Government’s proposals fail to align with current pension rules and processes.

Experts also warn that the extra administrative burden on pension trustees and providers will lead to higher costs—costs that will inevitably be passed onto consumers.

Worse still, 82.19% of industry professionals fear the increased complexity and unexpected tax bombshell will actively discourage people from engaging with pensions altogether, directly undermining government policy to promote retirement savings.

In response to the widespread fury, WBR Group has issued an open letter to Pensions Minister Torsten Bell, urging an immediate rethink.

With pensioners and savers set to bear the brunt of these punitive changes, the pressure is mounting on ministers to back down before disaster strikes.

According to Government estimates, around 49,000 estates per year which include pensions will face an inheritance tax bill.

This comprises 10,500 who would not have faced IHT at all if pensions were not included, and 38,500 who were already in the IHT net but will now face an additional bill.

A Treasury spokesperson emphasised that inherited pensions will be subject “to inheritance tax once and, if due, income tax once, as is the case with other savings”.

He added: “We continue to incentivise pensions savings for their intended purpose of funding retirement instead of them being openly used as a vehicle to transfer wealth.”