New research by YouGov, commissioned by UK wealth management and employee benefits firm Mattioli Woods, has revealed significant gaps in UK adults’ understanding of changes to the tax system and their confidence in planning for their financial futures. Almost two-thirds (64%) of respondents were unaware that, from April 2027, some pension funds are set to become liable for Inheritance Tax. The findings raise concerns about how prepared people are for changes that could have significant implications for how wealth is passed between generations.
The lack of awareness is reflected in wider uncertainty around inheritance planning, with just 18% of those surveyed feeling confident they will be able to pass on money or assets to their children or family in the most tax-efficient way. Awareness of the changes is particularly low among those aged 50 to 64, with 59% unaware of the forthcoming legislation.
There is also limited understanding of wider tax changes and terminology. Just one in five (20%) respondents have heard of stealth tax and understand what it means, while almost three in ten (29%) have never heard of the term.
The research also highlights widespread uncertainty around retirement planning. Just one in four (25%) feel confident they have, or will have, enough money to enjoy a good standard of living in retirement, with a figure of just 21% among women. There is also a notable generational divide, with only 24% of those aged 50 to 64 feeling confident about their retirement finances, compared with 45% of those aged 65 and over.
These concerns come against a backdrop of wider financial uncertainty following the 2026 Autumn Budget. More than half (53%) of respondents expect their household financial situation to worsen over the next 12 months, compared with just 11% who believe it will improve. More than one in four (26%) are considering reducing household spending as a direct result of the Budget.
Women are particularly pessimistic about their financial prospects, with 55% expecting their household finances to deteriorate over the next year. The Budget is also prompting some to reconsider their wider financial arrangements, with 13% considering reviewing their ISA or other tax-efficient savings arrangements, while 9% are reconsidering how they divide their money between cash savings and investments.
When asked which areas they would most like professional financial advice on, pensions and planning for retirement emerged as the leading priority, followed by reviewing overall finances and investing for long-term growth. Inheritance Tax and passing on money or assets, securing better returns on cash savings and reducing the amount of tax currently paid were also among the areas respondents identified.
Amit Joshi, Managing Director of Wealth at Mattioli Woods said: “The research highlights a significant gap between the financial decisions people need to make and their confidence in making them. With almost two-thirds of UK adults unaware of forthcoming Inheritance Tax changes affecting some pension funds, and fewer than one in five confident they can pass on wealth in the most tax-efficient way, there is a real risk that people are not adequately prepared for the impact of changes to the tax system.
“This is particularly concerning when considered alongside the findings on retirement planning. Just one in four people feel confident they will have enough money to enjoy a good standard of living in retirement, falling to just 21% among women. These figures suggest that many people are facing uncertainty not just about their immediate finances, but about their longer-term financial security and the legacy they will be able to leave their families. Understanding how pensions, Inheritance Tax and wider tax changes interact is becoming increasingly important. Taking a joined-up approach to financial planning can help people understand their options, make informed decisions and ensure their existing arrangements continue to reflect their needs and ambitions.”
The findings underline the importance of greater financial awareness and professional guidance as people navigate changes to the tax system and plan for their longer-term financial security. With significant gaps in understanding around Inheritance Tax, low confidence in retirement planning and uncertainty about passing on wealth, the research highlights the need for people to take a more proactive approach to their finances.
Amit continued:
“With just one in five people understanding what ‘stealth tax’ means, there is a clear need to make financial language, and its implications, easier to understand. Professional advice can help people make sense of complex changes to legislation, understand how these may affect their individual circumstances and put appropriate plans in place. Whether preparing for retirement, making the most of tax-efficient savings or considering how wealth will be passed on to future generations, having a clear financial plan can make a meaningful difference.”
In June this year, Mattioli Woods integrated Kingswood Group under a unified brand, following its October 2025 merger. The combined business oversees more than 30,000 clients, with over 200 financial advisers across more than 40 UK offices. The Group says the integration strengthens its position as a national wealth manager and enhances its ability to deliver joined-up wealth planning, investment management and employee benefits services.
