Platforum: Opportunities for Retirement Products and Strategies Set to Surge

Why It Matters

The tightening IHT landscape and frozen nil‑rate band will drive clients toward sophisticated retirement and estate‑planning services, creating a sizable growth opportunity for advisers and product providers.

Key Takeaways

• Natural income portfolios now recommended by 43% of advisers, up from 23%
• Lifetime gifting via onshore bonds in trusts gaining traction among clients
• Two‑thirds of advisers have recommended annuities in the past year
• 60% of advisers expect more onshore bond use over next two years
• 40% of advisers view IHT changes as opportunity, not threat

Pulse Analysis

The UK’s upcoming inheritance‑tax (IHT) reforms, slated for 5 April 2027, will pull a larger share of pension wealth into the tax net. A £500,000 pension fund caught after the deadline could face roughly £200,000 of tax – about $635,000 and $254,000 respectively in U.S. dollars – making the financial impact unmistakable for retirees. Coupled with a decade‑long freeze of the nil‑rate band, advisers are already seeing a surge in clients seeking ways to preserve wealth and minimise future liabilities.

Advisers are responding with a noticeable shift toward income‑focused solutions. Natural income portfolios now feature in 43% of decumulation recommendations, up from 23% in 2023, while two‑thirds of advisers have added annuities to their toolkit this year. Lifetime gifting through onshore bonds held in trusts is also gaining traction, with 60% of advisers expecting higher usage over the next two years. Platform‑based defined‑fund‑mortgage (DFM) retirement products and trust‑linked offerings such as Quilter’s Lifestyle Trust are expanding the menu of options.

The evolving landscape translates into a clear business opportunity. Roughly 40% of advisers view the IHT changes as a catalyst for new revenue, anticipating higher demand for complex estate‑planning and intergenerational advice. To capture this demand, firms must invest in specialised training, robust technology, and seamless integration of bond and trust products on their platforms. Providers that simplify administration and deliver genuine retirement‑income expertise are likely to outpace competitors, while those that ignore the rising complexity risk losing market share as client needs become increasingly sophisticated.