IHT on Pensions and Consumer Duty: Strategic Marketing Opportunities for Financial Advisers

From 6 April 2027, most unused Defined Contribution (DC) pension assets will be included within estates for Inheritance Tax (IHT) purposes, ending their long-held IHT-free status. This significant regulatory shift is projected to make approximately 10,500 estates newly liable for IHT and see a further 38,500 estates paying increased IHT in the 2027-28 tax year alone—with an estimated £3.44 billion in additional revenue over the first three years.

The Consumer Duty Challenge Creates Marketing Differentiation Opportunities

The Financial Reporter highlights how regulated advisers under Consumer Duty must now ensure that advice on retirement income is genuinely holistic. However, concerns have been raised that many advisers will focus narrowly on pensions—overlooking valuable options such as property wealth, equity release, and cross-professional referrals.

This regulatory complexity presents a significant opportunity for advisers to differentiate themselves through strategic brand positioning and comprehensive client education programmes.

Property Wealth as a Strategic Alternative

Air, a later-life lending platform, emphasises that equipping clients to draw down more from pensions—or opt for lump sums or annuities—may be a necessary IHT mitigation strategy. Today’s Wills and Probate reports that unlocking housing wealth via modern equity release offers a flexible alternative, with the potential for beneficial IHT treatment through seven-year gifting.

Over-55s hold around £3.7 trillion in property wealth—roughly two-thirds of UK property wealth—representing a strategic asset class for retirement and legacy planning that advisers can leverage in their client communication strategies.

Industry Concerns About Policy Implementation

Professional Adviser notes that industry voices caution the policy is unworkable, complex, and risks undermining good client outcomes—possibly deterring saving, delaying bereavement payouts, and failing Consumer Duty objectives. IFA Magazine echoes these concerns about the Consumer Duty implications of the new rules.

These industry-wide concerns present opportunities for proactive advisers to position themselves as trusted guides through regulatory uncertainty.

Strategic Marketing Opportunities for Advisory Firms

Build Thought Leadership Through Expert Commentary

Position your firm as the go-to expert on navigating this policy shift. This regulatory change offers numerous opportunities for thought leadership and PR initiatives, helping advisers establish authority in the market before competitors react.

Develop Comprehensive Educational Content

Create timely, accessible content that explains the changes and their implications. Consider developing:

• Detailed guides explaining the IHT pension changes
• Interactive calculators and tools to help clients assess their exposure
• Video content breaking down complex concepts
• Webinars addressing specific client concerns

This educational approach aligns with Consumer Duty compliance requirements whilst positioning your firm as genuinely client-focused.

Strengthen Cross-Professional Networks

The holistic advice requirement under Consumer Duty creates opportunities to build stronger referral generation strategies with solicitors, accountants, and later-life lending specialists. These partnerships can become a key differentiator in your professional networking strategy.

Target High-Risk Client Segments

Focus marketing efforts on clients most exposed to these changes:

• Single clients and unmarried couples
• Those with high-value DC pensions
• Clients holding illiquid assets in SIPPs
• Over-55s with significant property wealth

Develop targeted email marketing campaigns and personalised client communications for these specific segments.

Actionable Marketing Strategies for Implementation

1. Conduct Strategic Client Reviews

Review your client base to identify those most exposed to the new IHT rules. This creates natural opportunities for client engagement and demonstrates proactive service under Consumer Duty requirements.

2. Integrate Property Wealth Planning

Develop expertise in property-wealth strategies, such as equity release or gifting from unlocked housing wealth, as tools for retirement and IHT planning. This holistic approach can become a key element of your brand positioning.

3. Develop Educational Events Programme

Create an events marketing strategy focused on educating clients about the changes. Joint events with solicitors and accountants can strengthen professional relationships whilst demonstrating comprehensive service delivery.

4. Enhance Digital Presence

Ensure your web presence reflects your expertise in navigating these changes. Optimise content for search engines using relevant keywords around IHT pension planning, Consumer Duty compliance, and holistic retirement advice.

5. Leverage Social Media for Education

Use social media platforms to share educational content about the changes, positioning your firm as helpful and knowledgeable. Consider social media video content to explain complex concepts in accessible formats.

Building Long-Term Client Relationships

The key to success lies in proactive communication that reassures rather than alarms clients. Develop messaging that emphasises empowerment and control, helping clients understand their options rather than simply highlighting problems.

Consider implementing client feedback systems to understand client concerns and tailor your approach accordingly. This data can inform your content creation strategy and ensure your messaging resonates with client needs.

Looking Ahead: Positioning for Success

The inclusion of pension assets in IHT calculations represents more than a policy change—it’s a strategic inflection point for forward-thinking financial advisers. Firms that embrace holistic planning, engage trusted partners, and position themselves as thought leaders can not only navigate these changes but thrive through them.

The challenge now is to translate this regulatory complexity into clear, actionable advice that demonstrates genuine value to clients. Those who achieve this balance will find themselves well-positioned for growth as the industry adapts to these significant changes.

By focusing on building client advocacy through transparent, helpful communication during this transition, advisers can strengthen relationships whilst attracting new clients seeking guidance through regulatory uncertainty.