Christian and Kevin explain the major changes to inheritance tax on pensions coming in April 2027. They discuss how these new rules could increase tax bills for families, the basics of inheritance tax, and practical steps to protect your legacy. You’ll learn why consolidating pensions matters, how SSAS pensions can help business owners, and get clear, actionable advice to safeguard your wealth for future generations.
In this week's WealthTalk episode, Christian and Kevin dive deep into the major changes coming to inheritance tax on pensions from April 2027.
They explain how these changes impact UK pension holders, why awareness and action are critical, and practical steps to protect your legacy.
The discussion covers the basics of inheritance tax, the new rules for pensions, the benefits of consolidating pensions, and how SSAS pensions can offer unique advantages for business owners and families.
The episode is packed with actionable advice, real-life scenarios, and essential tips to help listeners safeguard their wealth for future generations.
Key Takeaways:
1. What’s Changing: From April 2027, pension assets will be included in your estate for inheritance tax purposes, potentially increasing tax bills for families.
2. How Inheritance Tax Works: Understanding nil rate bands, residence nil rate bands, and how thresholds apply to individuals and couples.
3. Why Consolidate Pensions: Multiple pensions can mean multiple fees and administrative headaches—consolidation can simplify estate planning and reduce costs.
4. SSAS Pensions: How Small Self-Administered Schemes can offer flexibility, family involvement, and strategies to mitigate inheritance tax.
5. Gifting Strategies: The difference between gifting from capital (subject to seven-year rule) and gifting from income (no seven-year rule).
6. The Role of Wills & Trusts: Why pensions usually sit outside your will, and the importance of using trusts for life insurance and asset protection.
Action Steps:
Building a Family Wealth Legacy: Involving the next generation, sharing financial wisdom, and using family wealth structures to maintain and grow assets.
Practical Tips:
1. Don’t wait until 2027—start reviewing and organising your pensions now.
2. Put life insurance policies in trust to avoid unnecessary inheritance tax.
3. Use SSAS pension features like loanback and earmarking to support family wealth and business growth.
4. Download the Guide - Click here to join the waitlist for the upcoming step-by-step guide on inheritance tax and pensions.
Connect with WealthBuilders
Next Steps On Your WealthBuilding Journey:
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Speaker 1 (00:01.836)
The purpose of Wealth Talk is to educate, inform and hopefully entertain you on the subject of building your wealth. Wealth Builders recommends you should always take independent financial, tax or legal advice before making any decisions around your finances.
Today's episode is brought to you by Wealth Builders Membership, a proven step-by-step process that helps you achieve financial security within two to three years. find out more, head to wealthbuilders.co.uk forward slash membership. Welcome to this week's episode of Wealth Talk. My name is Christian Rodwell, the membership director for Wealth Builders, joined today by our founder, Mr. Kevin Whelan. Hi, Kevin.
Chris, good to be with you again. Did you nearly forget your name?
Yeah, I'd roll there. Yep. Well, it's been a while actually since two of us were together. You've been so busy speaking all around the UK and I took a break in Ibiza. So it's good to be back. So Kevin, we today thought we would focus in on a topic that has been talk of the town really certainly within our members and clients for the last six months since its announcement in the autumn budget. And this is the inheritance tax on pension assets. Big news.
Yeah, it's not that that's what we talk about all day. You know, we're a bunch of boring old farts talking about pensions, but it is big news, joking apart, because inheritance tax is one of those things. It's absolutely the most pernicious tax of all. It's a punishing tax. It's often what we call a dry tax, which means you get the tax bill, but you don't have an asset that you already liquidated to sell it. You know, so you've got to sell something to pay the tax.
Speaker 1 (01:42.242)
Because you only get six months to pay inheritance tax and it's going to get even more complicated for people with pensions. So let's just revisit what inheritance tax is. Then revisit kind of how pensions work within that and why anybody who's got a family or does not want to see quite a considerable proportion of their life's work. The blood, the sweat and the years they put in being taxed twice. Once as they build it.
and secondly, when they pass it on. And there are even worse taxes than that when it comes to the fact that when the inheritance is received from pensions, it can be taxed again as an income is drawn. But we're not going to get too deep today, right? So we're trying to, yeah, we're trying to give people an overview of why this is a very important subject and that pensions are changing, or at least the government are changing the tax on them from April 2027.
Just to be aware of it, Harrison's tax. So in this country, when you die and everybody knows there's a process of calculating the value of something called an estate, everything you own minus everything you owe, and that's totaled up. And everyone has to do a report to the revenue to assess whether any tax is due. Now, not all tax is due because there are some exceptions and one of those exceptions, a big one.
Is there is no inheritance tax to pay between spouses. So you single people out there, you live in couples, but watch out for that one. Not a reason to get married, I hasten to add, but nonetheless, good to think about it. So no inheritance tax to pay between spouses. So let's, let's kill off Kev with a very large pension. So I'm not happy, right? I'm holding it back, but I'm not happy, Chris. Large pension fund. If I die, which I expect to before my wife who's younger than me, she will receive.
pension value free of inheritance tax. Then inheritance tax will be due on her death. So it's a second death or unless you're on your own. And then there's some complicated rules about the transference of inheritance tax allowances, you know, when somebody's died and they carry forward to the next person on their death. But in simple terms, we don't get much to play with. after the, if you imagine it's second death, so my wife's died and
Speaker 1 (04:05.518)
The value of the estate is assessed. In the simplest terms, everyone's got 325,000 pounds worth of tax relief or money they can give for basically for free from inheritance tax, which is called the nil rate band, very odd term, but we get a lot of odd terms in financial services, don't we? So a nil rate band. So the band of which there's nil tax to pay, nil rate band. In addition, if you own a home,
And you're leaving your home to your direct descendants, not your nieces and nephews, not your best friend around the corner. You go leaving it to your direct descendants, your children. Then you've got an extra 175 called the residence, nil right band. Go figure. Add the two together. That's 500. So one person has 500,000 potentially maximum. They can leave to the next generation tax free.
And if Kev goes before Sarah, my 500 transfers to my wife. That means a million. So if your estate is going to be less than a million, you probably won't see the tax being a real big issue for you. But historically, we always thought pensions were not going to be included in that. So whatever your pension was, it wouldn't be counted in your estate.
It was inheritance tax free from April, 2027. That's no longer the case. So what that would do is in my case, it would shunt the value of the estate. And therefore the estate is worth more than a million, which of course you'd expect it to be from me. You're going to end up paying more tax. So could be as high as 40 % on the value.
of our pension fund. if that, and it won't give private figures here, but it's north of seven figures. So if you pick someone with a million, for example, then that's 400,000 going in tax. Now you've got three kids, you've got 400 to the tax man and 700 divided by three. So the tax man gets more than your kids. It's not right, Chris. And we've got to help people do something about it. Now I haven't done a full treatise on an heiress' tax here. That's not the point of it.
Speaker 1 (06:35.778)
The point is people have got to think about their pensions more than ever before in the history of pensions. And one of the big challenges is, as we know, because we've done many snippets of pension stories over the course of our number of years together, is there's massive amounts of money people have lost and forgotten with their pensions. Billions, 27 billion in fact, at last came.
And if people have got pensions with different companies, and we see it a lot, don't we? How many pensions have you got? I don't know. Where are they? I'm not quite sure. Well, you have to be sure now. So an action that everyone should take. I'm to give three actions everybody should take, right? So if you're listening to this, please take this action. Number one, just double check what your state pension is. Make sure you're on track for a full state pension. Now state pension is not inheritance taxable because it's an income.
It's something you're entitled to when you reach state pension age. Currently 66, moving to 67, and we'll keep going backwards. So when younger generation listen to this, we'll be in the 70s away in 70s. But just go check that out. Number two, find out where your pensions are, gather them together so you've got a sense of the value, and then where possible, simplify, consolidate. Why am saying that?
I'm saying that because if you've got a situation where currently as proposed, the inheritance tax that will be payable to HMRC has got to be paid within six months, that's inheritance tax. So if the tax has got to be paid in order to make it easy for the Inland Revenue to get it, they're going to make the administrators of pensions, so legal in general, Aviva, Standard Life.
if Hungary lands down, whoever, whoever, they will have to have the responsibility to pay the tax. Now, if you've got five pensions, how on earth is that going to
Speaker 1 (08:45.07)
So what will happen inevitably, I think, is all of these pension administrators who never had this work to do before, they didn't have to do it. They just used to pay it out because it was tax free. Now it's taxable. They've got to work out the tax, then send the tax to the inland revenue, then send the balance to the beneficiaries. That's a heck of a lot more work. Wouldn't you agree? Like if you're a company, all of a sudden you've got all this work to do.
So what are you going to do about that work? You're going to increase your fees. Right? So if you've got someone with five pensions, they're going to have five fees to pay. Consolidate means it's only going to be done once.
Then if you can and you qualify and you can over the coming years, or if you've got one already, a limited company, then you're entitled to look into something called a SaaS or small self-administered scheme, which we've done many podcasts on SaaS, Chris, where the inheritance tax treatment is fundamentally different in many ways. The tax is the same.
but your ability to interact, influence and involve other people in your family, you can make great strides in reducing that inheritance tax. Okay. So it's fundamentally massive now that you do some of those things. Right. And we can help with that. know, anybody who wants to know more, I'm sure Chris, you can create some resources. It's
Probably the biggest thing that's happened in pensions in my lifetime, and it's the biggest thing that's happened to my own SAS pension. And I want to do something to encourage people to know about it. Because once you know about things, which I call awareness, once you've got awareness, you can do three things. So think about this in any financial decision. Awareness is everything because then you've got the picture.
Speaker 1 (10:57.752)
But you've got a clear picture, not an unfocused picture, not a, not a smoky opaque picture. You got a clear picture of where your pensions are, what the tax is going to be. Then you can make one of three decisions. One, I'm not going to pay tax. I'm okay. Two, shit. That's a massive amount of tax. I want to do something about it. Or I don't have much tax to pay.
I could probably tweak something else in my life to eliminate that. So it's either going to not affected, affected a big style or affected small, but either way you should know because then you can do something about it. The lack of awareness is the biggest single factor that has led to the huge increase in the value of the inheritance tax take up. So the revenue are taking more money in inheritance tax than ever before, 7 billion a year at the minute.
that will massively go up with the tax on pensions. So as a result of that, they know that most people aren't going to pay attention to this. So please, if you're listening to this, or you know somebody who's got a pension and let's say they're in their 40s or 50s, let them know about this because this is action everybody should take. I'm sorry I got on a soapbox there, Chris, but are you okay with the explanation?
That's been great. I'm already thinking our listeners are probably scribbling away thinking, there's a lot of information that you've just shared. What we can do, Kevin, is actually put something together like a guide where we can write that over the next few weeks, perhaps, and then put all of this information step by step so our listeners can have something to work from. Obviously then, if they want to get in touch with us, then you'll be more welcome to do that.
So should we put that guide together?
Speaker 1 (12:50.05)
Yeah, let's do that. It'll take us a little bit of time because some of the actual workings out, not in terms of the tax, that's an intention that's clear, but the mechanics are not a hundred percent clear yet because it's not yet law. But, but I think we can, we can certainly put some of the, we can create a set of tips and processes to give that awareness so people can make their own mind up about what they want to do, do it on their own or get some help. Very relaxed about that, aren't we? And update that every time the consultation.
It gives us a little bit more clarity, but don't wait two years. You know, don't wait till April 2027 and go, well, I'll take some action then start doing some small things now. Find out about your state pension, find it, get your pensions where they are now, get them consolidated. And if you haven't got a limited company, get one. If you've got a limited company, find out a little bit more and from us, if you wish about this concept of SaaS. And I'll give some of the benefits of that Chris, because it's such a big issue.
can talk in a second perhaps about some additional succession and structuring strategies. We'll get a waitlist up and live. So when you're listening to this episode right now, hit the link in the show notes. We'll probably put that on wealthbuilders.co.uk forward slash IHT. Nice and simple. And put your name on the waitlist. And as soon as that guide is written, you will get a copy into your inbox. So make sure you get on the waitlist right now. Kevin, one of the things we know that's available now,
is the seven-year rule where you can gift. Perhaps you can just talk through that. Do you see that still being a strategy here? As you said, if someone needs to tweak, perhaps they're just a little bit over. They want to minimize some tax, they might be able to gift if they feel there's enough time and they wish to do that.
It's an interesting question and we do have some gifting and there are some very small gifting rules and I don't want to make anything particularly timely in terms of because they can change them in a budget. But there are some very, very limited small exempted gifting rules, know, in the less than 10,000. But the 325 rule, which is because you've got the nil rate band, remember the 325? So if you give
Speaker 1 (15:04.11)
300 up to 325,000 away. And we'll come back to why that's important. Then what the government allows you to do is essentially wipe that out from your estate after seven years. Okay. So if you make a gift today and live seven years, that gift is deemed to have gone out of your estate, but it's still in your estate, even though you're giving it away and it's tapered. And between three and seven years, you've got first three years, you know, it's the gift not decreased at all.
And then it goes 80, 60, 40, 20. So gets tapered. But, and this is a common thing, but one of the interesting issues for me about gifting is not everybody's wealthy yet. So gifting means you've got to give away and you can't give away with a little tag that says, I'll give it to you, but will you let me have it? You have to gift it. So, so the principles of gifting in my view is you best.
learn more about how to do gifting once you're already wealthy. Because when you're in a position where your own finances are certain for life, and that's really what we think wealth is all about, isn't it? Creating a certainty of multiple streams of recurring income in a world that's fundamentally uncertain and getting more uncertain almost, it seems, by the week, you're creating income certainty. Once you've got that,
Then you're in a much stronger position to look at all of your assets, all of the pillars, so to speak, and to say, well, what do I want to do with my home? How do I want to deal with that from an inheritance point of view? My pension, how do I, and we'll talk about some of those sketches. What do I do with my investments? What do I do with my property portfolio? What do I do with my business? Because that's been affected as well. You know, so businesses used to be able to
give their business away to the next generation and we completely free even Aarhus time, right? Now isn't, you know, so that's another bit of tax on the entrepreneur. It's now limited to a million quid tax free. And this is a challenge. if you've got a few, again, you put your life's work into something thinking you're going to be able to pass it on to the next generation tax free, you don't have to do that. So it's going to put more pressure on you to be more aware and awareness is the key.
Speaker 1 (17:29.272)
more aware because awareness allows you to make clear decisions. Right. So that deals with the issue and you could do the same with any asset, intellectual property, joint ventures, all of those things would form part of your estate and you need to get clarity. The real thing that I think is missed by most people here is there is an unlimited gifting rule that isn't affected by the seven year clock at all.
Would you like to hear more about that?
Well, I already know about it!
I can see you looking at me that way.
It's called gifting out of income. So stated differently. If you can prove, and it's all about proof and documentation, as many of these things are with taxes are, if you can prove that your level of income that you require, your level of wealth and income from your assets is flowing into your life at a significantly higher level than the money needs to flow out of your life, you can gift as much as you want away and there's no seven year rule and there's no seven year.
Speaker 1 (18:35.182)
There's no 325 rule, there's no seven year clock. I'll give you an example. Let's say the typical person who joins our wealth builder program, Chris, and they want to be completely financially independent. When surveyed, when asked and when documented, the average figure they give us is 10,000 a month. It's been that way for five years. know, people still say 10 grand a month, I'd be set for life. And that's great. Let's say then, you know, you, you get the good guidance that
you can do and you've got an income coming in of 15,000 a month. And you can give the other money away because you're proving that you've got the 10,000 coming in, but you've got 15,000. So you can give the other money away. When you get seriously wealthy and you've got 20, 30, 40, 50,000 a month coming in and you can't possibly spend it, you don't have to wait for the seven year clock and the three year and the
325 limit. You can do both. You can do that gifting from value and gifting out of income. So the real issue with, for me, is why financial planning, another soapbox sorry, is fundamentally looking at life through the wrong lens. Is everything is focused for inheritance tax and from financial planner's viewpoint on value. What's the value of my home? What's the value of my pension? What's the value? What's the value? What's the value? My question is, what's the income flow?
Because when you've got the income flow, then you've got more control over how you distribute that in the future. And also you're not affected by sudden changes in market values. You know, we've seen in our lifetime, well, me more than you, that when you get big stock market corrections and you're spending your capital to live, which is what most people do with pensions, they get a fund value at retirement and then they have to spend it to live.
You get a big correction, you're going to be living and struggling and that's not what you want. so to me, the principle of having high flowing income streams is you've got more control, you've got less risk, you've got more predictability, you've got the ability to pass it on in a much more effective way. And actually you feel more relaxed that, you know, what you want is that certainty in an uncertain world.
Speaker 1 (21:00.044)
And then because you've got that, you're no longer feeling nervous about passing the wisdom on to the next generation because inheritance is always about the next generation. And with children living longer and grandkids living longer and people living longer, they need more, not just more money because they can consume it. They need more wisdom to go with that. And that comes much better, more confidently from a place where you've got predictable income. Wouldn't you say that if you know you've got
income flowing from multiple streams, you can say, this is how I did it. This is how to build it. This is how to manage it. This is how to maintain it. This is how to be mindful when tax changes, talk to somebody who's got expertise who will keep you safe rather than the money's gone up, the money's gone down, mom or dad's running out of money and feeling stressed at the time when they should be feeling completely relaxed. So the mindset of a wealth builder is fundamentally different to the mindset of the traditional, which is why this
out of income rule, it's never talked about in financial planning because everybody focuses on value. I know we haven't talked about how to minimize inheritance tax on pensions yet, but you keep taking me off on tangents. Chris, you need to get me back on track.
you off on one more, which is a question that we've received as well about, should I be updating my will to reflect these pension changes?
Well, know, the answer to that seems logical, like you should, right? But actually pensions are not, or they shouldn't be, they shouldn't be touched by the will. See, a will is, to me, a will is a snapshot of your wishes. Take a picture of your wishes. And the will just directs what we call the residue. So what's left before you made other decisions and made clear the directions.
Speaker 1 (22:48.92)
So if you don't say anything about anything, the will just says, what's left goes this way. But a will doesn't really deal with an interest tax, just says, if I die, send the money there. So the tax has got to be paid before sending the money there. So the will and the pension are not related because if you've got a pension, which for everyone's, you know, serve as a reminder for many, maybe it's new for new listeners.
Pension is a trust fund or pensions are trust funds. They've got trustees. And because it's a trust fund and you nominate the beneficiary, like making a will, but it's, leave my benefit, my pension to my spouse or my husband or my children or whatever it is, then because you've done that, it doesn't go via the will. It's excluded from the will. Now, obviously, historically, pensions were excluded both from the will and the tax bill.
Now they're going to be included in the tax bill, but they still stay outside the will because I explained earlier on who's going to pay the tax. It's the trustee. Right. They don't need to read a will. know, so there's no delay. They just paid the bloody tax. you know, the will and pension unrelated. But I would say the principle we share in wealth builders is not simply wills, it's what we call the roof. And the roof is a well-structured.
well articulated series of structures that have to work together to help control the direction of your money and help minimize tax if you use the right structure. So will is absolutely incredibly important to do that. I think most people have got the message they need to make a will and that's fine. They need powers of attorney to ensure that well, if you don't die, but you get ill.
then decisions can be made and that's important. Again, it doesn't affect inheritance tax, but it affects the ease of administration in times of challenge, in times of disaster, if you like. So that's important, but they don't do anything about inheritance tax. What affects inheritance tax trusts? So putting life insurance, if you've got life cover to pay a mortgage or to pay your loved one's money if you die, that should be in trust. Because then it doesn't go by the will, it goes directly
Speaker 1 (25:14.158)
to the person or people who are nominated and that's tax free. You're pensioned currently until April 27. No will pays your beneficiaries tax free. So gradually, the process is about creating wills, trusts, powers of attorney, and even separate legal structures. We can get very complicated, I don't want to do that, where you're creating separate family companies with share classes.
So the value sits in the company, but the shares are distributed on your debt. And there many ways that you can create structures that will help distribute the money that you've worked hard in the right way, but they're beyond the scope of the subject of today, which is pensions.
I want to emphasize that key point you've just made there about the life insurance, because if it's not in trust, that will be included now in the total estate, right? Which could be, yeah. the simple exercise of putting it in trust, asking your insurance company, can we put this in trust? Will save you potentially thousands of pounds.
Not in church.
Speaker 1 (26:19.266)
Well, won't save you because you're dead, but it will save the beneficiary. But the concept of what you said, ask your insurance company if you can put it in trust. You can, you don't need to ask them. You can, and it's more often than not, quite genuinely a tick box and named people. So it's not complicated. I have to put this in trust and do I need to talk to a lawyer? Do I need to pay fees? No, you don't. You don't need to do that at all. In most cases.
The insurance company has already got a trust form and they'll send it to you. You write the name of the beneficiary, tick the box, job done.
And if there's one action you take from this episode, then I would say that that should certainly be one of them. We've got lots, lots that we've covered, lots that we could cover Kevin, but for some of our members who have got SaaS pensions. So you touched on SaaS earlier. It's an entrepreneurial pension, a pension for business owners. We've had questions from them, having a SaaS, does that put me in any better position in terms of my potential liability?
Well, the answer to that is it could do. Let's debunk the issues here as far as SaaS is concerned, where inheritors tax is positioned. As you say, it's an entrepreneurial pension, it's a trust fund, but it can only be set up by a director of a limited company on behalf of the company. It's like a company pension for your small company. And because you can uniquely in this country, you can have multi-members in a SaaS.
bizarrely for reasons written in rules in 1973 when SAS were first created. Small self-administered scheme for those who are going to go and check it out. SAS for short, Director's Pension is the sort of acronym, not the acronym, but the kind of more easier language to use. When you create as a limited company, a SAS, what you're saying is I want permission to run my pension with the same degree of enthusiasm as I run my business. You get...
Speaker 1 (28:24.28)
to take control. when you, need to take that responsibility and be willing to do that. So it's not for everyone. Of course not. But wealth builders generally are more entrepreneurial. They're willing to get more control, to exercise more decisions by intention rather than accident, to do more rather than delegate more. If that's you, that could be a good fit for you. But one of the benefits is because you can add up to 11 members. So if you take,
a family like a husband, wife, and three grown up kids, you can have, you've got to be 18 to be a trustee. So you have to be grown up kids. So you, you've got five members. Well, if you've got five members, I think there are three benefits from that. That might be worth sharing. That would be invisible to most people.
The first one is there's a concept in SaaS known as earmarking. And earmarking means you can make a decision inside a pension to allocate different returns from different assets to different members of the trust. I won't go into the detail of how, and I'm not saying it's going to solve the problem at once, but it can help. The second thing that SaaS can do
Again, not well spoken about, and certainly I've never heard anybody tell me they knew this before someone with SAS knowledge or somebody they know with a SAS expenditure. SAS can lend money.
the company sets it up. So let's say you're a property company and you've got a SaaS because you want to buy more property, but you don't want to build your pension so much because you don't want to build the value of the pension pot because you're going to have a bigger inheritance tax bill or somebody will. You can lend up to 50 % of the value to your own company, which does two things. One, it puts money in the company's name today.
Speaker 1 (30:35.202)
which means it gives an income to the company today, rather than waiting until your retirement age, you got an income today. And if you wanted to create a company where you shared that with your children, then you can be allocating money basically as a return from the pension to your children and bypassing your inheritance tax lineage. You see what I'm saying? So you grow wealth outside of the pension, but
The fuel came from the pension and then you can redistribute that in your own company in a way that you want. So again, that can help. The third thing I think is useful to know is because you can involve your children, you're creating the true spirit of what we call Chris in wealth builders, the family wealth business. And the family wealth business is a theoretical concept that we invented. Well, I invented it really, which came from this idea that the wealth of a family
has got the same intrinsic importance as a limited company has in somebody's life. In other words, it's got a purpose that's fueled by a passion and a requirement to build a value for somebody else to benefit from, but to extend and to continue to generations to come. In other words, a permanent legacy, not a temporary one. So if you're teaching this, if you've got the three grown up kids and you're giving them
either money to be able to make decisions or you're sharing with them the decisions that you're making, including asking them to do research almost like a dragon's den or getting them involved in the decisions, almost as if it were a business in its own right. And you name it in that way, Wheel and Family Wealth or Rod Wellbeing in your case, right? Mine's wealth builders anyway, but you get the idea of people name it and the kids become part of that stewardship.
which means the wisdom is happening now. It's not, dad's died, mom's died, money passes. There's no wisdom there. There's no continuation there. It's normally consumption there, which is why we've got this curious language that exists pretty much in all countries, which is shirt sleeves to shirt sleeves in three generations. If somebody works hard to build it, somebody works hard to spend it, and then it's all gone.
Speaker 1 (33:04.632)
To me, that's a tragedy, which is why we try and approach it from a different way. And SAS is a perfect way to do that. It's not perfect for everyone, as I've said, but it's real interesting way to grow value outside of your life and involve your next generation in a way that you... Have you ever heard of that? Conversations happening with someone who's got a pension with Aviva or Agon or legal and general standard life? mean, did those conversations ever happen?
Never happened. Never happened. You know, the parents don't even talk about it. And we already said in some cases, they don't even know where their pensions are. So this whole SaaS thing to me, when I discovered it, is a financial game changer. And it's an inheritance tax game changer as well. And if nothing else, and I'll make a final point, Chris, which is, which I was talking to somebody recently, he's got several million in their SaaS.
and was almost saying, should I really build it anymore? You know? And I'm like, well, that's an interesting question. Let me rephrase it. This is I did it with him. I said, okay. I want you to imagine, I'll call him Fred, but that's not his real name. I want you to imagine Fred, we're chatting to one of your kids and they've got a really, really great job.
And they're earning a hundred grand a year and they're feeling good about the job. They're loving the work. It's something that's giving them passion. And then their boss knocks on the door and says, Hey, Jimmy, can I have a word? And it's not redundancy. The boss says, I'd like you to have 200 grand for the same job you're doing now. Is Jimmy happy or sad? Smile, right? And, but I said, but if you framed it from the point of view that said,
Big smile, I imagine.
Speaker 1 (35:03.042)
But Jimmy, did you realize you're going to pay a shedload more tax on earning 200 grand than when you're earning 100 grand? Are you still happy? He's still happy because the net value after the tax is still higher than the net value after a hundred. So build your pension fund as much as you can, but learn the other tactics. Learn the different ways. Because if, for example, you knew that by controlling your money and your SaaS,
And very often it's in property, but in other assets too, you can get a more consistent, more stable return than perhaps you believe you can get riding the uncertain stock market waves. What you could do is you could capture some of that extra return. You could even run a comparable model to say, what would I go on the stock market? I would have got 6%. Okay. What did I get?
9%. Okay. Take the 3 % reinvest it in insurance policy to pay the inheritance tax. So you make the extra growth work to pay the tax. So you don't have to, your kids don't pay it. You've used some of the extra growth from your involvement and their participation as well to actually mitigate the tax that's coming. Cause we all pay tax. Can you see how the mindset is?
fundamentally different.
I think I better stop you here, Kevin, otherwise we're going to have to charge for this podcast. This is like a private mentoring session today.
Speaker 1 (36:38.18)
well, you got me on my hobby horse for now. And I often get on these because themes that happen, you know, within terrible things that other people decide to do and influence. And I think it's terrible. you know, I absolutely want to make sure that anybody with a pension that cares about this is doing something better. So let's, let's get those resources. Let's build the wait list for people who want to do that.
And let's try and help people over the next two years, take some steps rather than wait two years and then go, well, I'll wait in case another government comes in and they undo it. Cause they won't undo it. You know, once this horse is bolted and the revenue are getting more money from pensions, no government's going to change that. Cause the government's are slowly going bust, right? I mean, they're making decisions left, right and center, you know, which they think they're going to get more money, but they're actually not getting as much money.
as they need to run the country. anyway, I don't do politics. I'll stay away from that.
That's been great. Thank you for sharing all of that, Kevin. We will summarize and gather the information shared today in a concise guide, which you can download. So make sure your name's on the wait list. Head to wealthbuilders.co.uk forward slash IHT. Link will be in today's show notes. As soon as that's ready, we will get that sent out to you. Yeah. I dare say, if you're listening now,
Better get on with the work then.
Speaker 2 (38:06.438)
someone else, if you think, who might enjoy this episode and learn something from today's episode? Well, please share it with them. You are doing them an injustice by not sharing this information.
You can't unlearn this, right? Once you know this is true, and it's true for everyone, then don't value judge anybody because nobody talks about how much pension they've got. But if they're in their 40s, 50s or 60s and they've got kids, they need to know this.
Well, I hope you enjoyed today's episode. Kevin, you and I will be back same time, same place next week.
Well indeed my friend and until then, see ya!
Speaker 1 (38:43.288)
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the WealthBuilders membership site to help you create, build and protect your wealth. Head over to wealthbuilders.co.uk slash membership right now for free access. That's wealthbuilders.co.uk slash membership.