Fraud risk is highlighted with four warning signs of pension scams: cold outreach, unfamiliar firms, promises of early access, and pressure to act quickly; experts urge caution and seeking professional guidance.

Savers have already withdrawn significant sums in anticipation of the changes, with 3.9 billion taken as lump sums in the year following the announcement, up from the previous period.

On average, affected households face an additional 34,000 pounds in inheritance tax, with about 10,500 estates paying tax for the first time and another 38,500 facing higher bills.

By the end of the decade, the reforms are projected to double the share of estates paying inheritance tax—from about 5% to roughly 10%—while defined benefit pensions remain unaffected.

The reforms to defined contribution pensions will affect estate planning, but many savers may not face inheritance tax because their pension savings are typically small.

From April 2027, unused defined contribution pensions will be counted as part of estates for inheritance tax, potentially lifting tax bills for many and reshaping how people plan for the long term.

Authorities advise turning to Pension Wise or a regulated adviser for help, noting the changes won’t affect everyone and that rushing decisions could be costly.

Research indicates rising pension spending as fear and anxiety grow, with one in seven people already spending more and nearly half planning to in the future, a trend scammers are exploiting.