Experts slate Chancellor Rachel Reeves' plans

INHERITANCE tax changes set to be introduced by Rachel Reeves will be a disaster for future pensions, an expert warned.

- By Jonathan Walker Whitehall Editor

Former pensions minister Ros Altmann said the Chancellor must change her plans or risk leaving millions of people poorer in retirement.

Baroness Altmann said Ms Reeves “is bound to look at pensioners and pension spending as a potential source of extra revenue” in her next Budget, on November 26.

The Cabinet minister announced last year that unspent pension pots will be liable for inheritance tax for the first time, from April 2027.

The inheritance tax threshold of £325,000 will be frozen until 2030.

The changes are expected to raise an extra £2.3billion every year and double the number of grieving families liable to pay inheritance tax. But financial

'People will rush to withdraw as much as they can'

advisers say many older people are now rushing to spend their pension pots, instead of saving money to pass on to family.

A particular concern is many older people underestimate how long they will live, so risk running out of funds with years or decades ahead of them.