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UK Inheritance Tax Sparks £7.4B Annuity Surge by 2025

2/14/2026

26 3 Full Breakdown

Summary

Story summary

The United Kingdom's inheritance tax changes on pensions led to a surge in retirement annuity sales, reaching £7.4 billion in 2025, up 4%.
From April 2027, the rules will include unused pension savings in the IHT net, prompting individuals to secure funds.
Annuities are more appealing due to improved rates.
A 66-year-old with a £300,000 pension can now receive £22,440 annually, up from £13,500 five years ago.

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Story summary

The United Kingdom's inheritance tax changes on pensions led to a surge in retirement annuity sales, reaching £7.4 billion in 2025, up 4%.
From April 2027, the rules will include unused pension savings in the IHT net, prompting individuals to secure funds.
Annuities are more appealing due to improved rates.
A 66-year-old with a £300,000 pension can now receive £22,440 annually, up from £13,500 five years ago.