Rachel Reeves's raid on pensions set to be 'biggest tax hit in decades' as YOU could lose £214k to HMRC

Dariusz Karpowicz, who directs Albion Financial Advice in Doncaster, added: "Your pension pot faces a 40 per cent tax grab from 2027. That retirement fund you've built over decades could leave your family with a six-figure IHT bill they never expected,.

He emphasised that those without married status would bear the heaviest burden due to lacking spousal exemptions, with some facing effective tax rates exceeding 60 per cent.

A HM Treasury spokesperson said: "Most estates will continue to pay no inheritance tax. The first £325,000 of any estate can be inherited tax-free, rising to £500,000 if the estate includes a residence passed to direct descendants, and £1 million when a tax-free allowance is passed to a surviving spouse or civil partner.

"We continue to incentivise pensions savings for their intended purpose of funding retirement instead of them being openly used as a vehicle to transfer wealth."