Helping clients approaching 75 understand their pension options

Adviser: Peter Rose APFS, Chartered Financial Planner & Pensions Specialist · Pension planning, later life planning, pension IHT · All client details have been anonymised.

Situation

The client was a widow in her mid-seventies managing a flexi-access drawdown arrangement from her late husband's pension alongside her own defined contribution pension, which she had not yet touched. Her income from the State Pension, a small defined benefit pension and modest drawdown withdrawals was sufficient for her needs. She came to Aetas Wealth after her son read about the Finance Act 2026 pension changes and was concerned about what they meant for his mother's position.

Challenge

The client had two pension pots: the inherited drawdown arrangement and her own untouched defined contribution pension. Together these formed a substantial part of her estate. Under the pre-2027 rules, both would have passed outside of her estate for IHT purposes. Under the Finance Act 2026, both will be brought within scope from April 2027. The age 75 milestone itself brings specific considerations around pension tax treatment and the tax treatment of death benefits. The client needed clarity on what decisions were triggered by approaching 75, and how those decisions interacted with the April 2027 changes.

Approach

Peter Rose began by separating the two questions clearly: the age 75 review and the Finance Act 2026 changes are distinct matters, but they interact in her situation. A full review of both pension arrangements was carried out. Cash flow modelling established whether she needed to draw more from the pensions — and showed that she was drawing less than she could from a tax efficiency perspective.

From that foundation, three areas were addressed: an adjusted drawdown strategy to make use of her income tax personal allowance fully; death benefit nominations reviewed and updated for both pensions; and the interaction with her wider estate considered, including what the April 2027 changes would mean for her family.

Outcome

The client left with clarity on a situation that had felt confusing. Her drawdown strategy was adjusted. Her death benefit nominations were updated. She had a clear view of her overall estate position and what the April 2027 changes would mean. Her son attended the review meeting with her and described the process as enormously reassuring — not because the tax position had disappeared, but because his mother now had a plan and understood it.

This case study is anonymised. Names and identifying information have been changed. It is intended to illustrate how financial planning can help and does not constitute advice for your own situation. Aetas Wealth is a trading style of Insight Financial Associates Limited, authorised and regulated by the Financial Conduct Authority (FRN 458421). Companies House 05054886. The value of investments can fall as well as rise. The FCA does not regulate Wills, Trusts or Tax advice.