Advice firms step up preparations for 2027 pension and IHT changes, TFAS research finds
21 October 2026
New research reveals advisers are actively reviewing clients, adapting retirement planning strategies and evolving their services ahead of April 2027.
New research from TFAS Compliance Services suggests that financial advice firms are actively preparing for the forthcoming April 2027 pension and inheritance tax changes, with many already adapting their advice processes and services in response.
The research, conducted as part of TFAS's 2027 Ready programme, was undertaken to understand how firms are preparing, what changes they are making to their advice processes and where further support would be most valuable.
Key findings include:
- 93% of respondents have started reviewing their client banks and approaching clients about the changes.
- 76% expect the reforms to affect the number or mix of services and solutions they provide.
- 83% estimate that either a meaningful minority or the majority of their clients will be affected.
- 73% identify client engagement or time and capacity as their biggest challenge in preparing for the changes.
From awareness to action
The findings indicate that advice firms are moving beyond understanding the forthcoming changes and are increasingly incorporating their implications into client conversations, financial planning and advice processes.
Over a quarter (26%) of respondents report having fully reviewed their client banks and started approaching clients, with a further 67% having commenced the process.
The qualitative responses highlight how advisers are reconsidering retirement income strategies, including the order in which pension and other assets are accessed, the potential role of annuities and the wider implications for retirement income planning.
Firms also report placing greater emphasis on inheritance tax planning, beneficiary nominations, Expressions of Wish, gifting, trusts and protection, reflecting the increasingly interconnected nature of retirement and estate planning.
Supporting firms as they put plans into practice
While firms are making progress, the research also highlights the practical considerations involved in preparing for the changes.
Client engagement was the most frequently identified challenge, selected by 38% of respondents, closely followed by time and capacity at 35%.
Technical knowledge was identified by 23%, demonstrating the importance of continued education alongside the practical resources needed to support client reviews and implement appropriate planning strategies.
The research also identifies strong demand for further technical guidance and CPD, worked examples and practical client communication resources.
Richard Ardron, Chief Commercial Officer at TFAS, said:
"The overwhelming message from our research is that advice firms are already taking action ahead of the April 2027 changes, accessing the information and support they need and engaging with clients to assess the implications for their individual circumstances.
"What is particularly interesting is that the reforms are already influencing the advice itself - from retirement income strategies and pension withdrawals to protection, gifting and wider estate planning.
"This is a significant development for financial planning, and advisers have an important role to play in helping clients understand their options and make informed decisions.
"Alongside the technical considerations, firms are also thinking carefully about how they engage clients, adapt their advice processes and ensure they have the resources and expertise needed to deliver appropriate outcomes.
"Through 2027 Ready, our focus is on working with firms and industry partners to provide the practical guidance, expertise and support that will help them navigate these changes with confidence."
Supporting the next phase of preparation
TFAS will use the research findings to inform the next phase of its 2027 Ready programme, working with industry partners to provide technical guidance, practical examples and resources to support advisers and their clients.
The programme will build on the support already available, with a particular focus on helping firms translate their understanding of the changes into practical client engagement and advice processes.
