Retirement planning has never been more complex: tax rules shift, pension legislation evolves, and speculation about future reforms seems constant. While headlines can be distracting, long-term planning is much more than reacting to whatever the government does next, explains Saltus Chartered Financial Planner Alex Pugh. www.saltus.co.uk
“A financial planner’s role is to help clients build a strategy that remains resilient through uncertainty — one that protects your lifestyle today and preserves your wealth and legacy for the next generation. Increasingly, planners are seeing that the most important decisions are not about the next big fiscal announcement but about how all the pieces of a client’s financial life work together, from family and relationships to retirement dreams and future priorities. Taking this into account, here is what to consider.”
The Evolving Role of Pensions
“Pensions remain one of the most powerful and tax-efficient tools for long-term retirement planning, yet our data indicates many savers underestimate what they will need. These gaps often emerge not because individuals have failed to save, but because lifestyle costs, family responsibilities, longevity, and inflation are routinely underestimated. The data also highlights growing concern about the future tax treatment of pensions. A third of high net worth individuals — HNWIs — are exploring strategies to protect their pensions from inheritance tax, and nearly 30% are reviewing retirement income plans due to potential future legislative changes. Effective planning in this area may involve sequencing withdrawals to balance tax efficiency and flexibility, and using non-pension assets first in certain cases to preserve pension value. It’s also worth reviewing or nominating a beneficiary — while it is ultimately up to your pension provider to decide where surplus pension is given after death, this is the best way to ensure your wishes are taken into consideration. Given the complexity, early planning and regular reviews are vital to ensuring you make the most of your pension into retirement.”
Why Tax Planning Shapes Retirement Conversations
“According to our most recent Saltus Wealth Index Report, 78% of HNWIs expect tax rises within the next year, and nearly 46% say tax reform is the single biggest risk to their wealth. This has prompted more people to review their long-term plans and take a more structured approach to intergenerational wealth transfer. Trusts are becoming increasingly common as part of this preparation. The data shows that 34% of HNWIs have already set up a family or discretionary trust, and 25% have placed property in trust specifically for their children. These structures are often used not only to manage potential tax exposure but also to maintain control and ensure responsible distribution of wealth across generations. With the inheritance tax nil-rate band frozen until at least April 2028, more estates are likely to exceed the threshold, particularly given rising property values. As a result, trust usage, lifetime gifting, and broader estate planning are likely to continue increasing.”
The Importance of Starting Early
“The earlier individuals begin to shape their strategy, the greater their ability to use annual allowances effectively, adjust investment approaches, and respond to changes in their circumstances. This is especially relevant for clients with complex affairs, including those with business ownership, multiple properties or blended families. These situations often involve competing considerations, from income needs to legacy intentions, and benefit significantly from long-term planning horizons. Early and regular review meetings provide the space to ensure that decisions remain aligned to goals and that the strategy continues to reflect evolving priorities — whether personal, legislative or economic. Over time, this creates the flexibility and resilience needed to maintain control and confidence, regardless of market cycles or government policy.”
Utilise a Well-Rounded Approach
“Retirement planning for HNWIs works best when viewed as a holistic strategy. Rather than treating pensions, ISAs, property, business assets, and trusts as separate pieces, a financial planner can help coordinate these elements to support both lifestyle and legacy goals. A comprehensive strategy typically balances the long-term, tax-efficient growth of pensions with the flexibility of ISAs and general investment accounts. Property and real assets often play a role in diversification and can provide additional liquidity options. Business interests may require their own exit or succession planning to ensure they contribute meaningfully to retirement income. Meanwhile, trusts and lifetime gifting can support intergenerational objectives by ensuring wealth is transferred responsibly and in line with a family’s long-term wishes. And don’t forget to factor in protection planning — such as wills, lasting powers of attorney, and insurance arrangements — which also form an important part of this broader picture. Together, these components create a robust financial structure that can withstand both personal change and shifts in the wider economic or political environment.”
Planning That Remains Resilient Through Change
“While tax policy and pension legislation will continue to evolve, the underlying principles of effective retirement planning remain constant: clarity of objectives, intelligent structuring, and regular review. For HNWIs, retirement planning is about far more than building a pension pot. It is about ensuring that wealth can support a fulfilling lifestyle, provide for future generations, and remain robust through periods of uncertainty. A thoughtful, strategic approach enables individuals to feel confident that their long-term plans are well positioned, no matter what reforms or market movements lie ahead.”
