6. IF YOU’VE ALREADY RETIRED MAKE SURE YOU’RE TAKING INCOME EFFICIENTLY Pensions can be incredibly tax-efficient from an IHT perspective, but only if you nominate beneficiaries. We find that many people who save into pensions haven’t correctly nominated their beneficiaries. That means their loved ones could unnecessarily be paying tax when they die. Nominating beneficiaries is simple to do and something we can help you with. 7. IF YOU’VE ALREADY RETIRED MAKE SURE YOU’RE TAKING INCOME EFFICIENTLY Your pension is there to support you through retirement, so using it to provide you with a regular income after you stop work makes sense. However, if you’re fortunate enough to have sufficient and appropriate other assets, it might pay to be a little more creative. Any savings and investments – such as ISAs and shares – are likely to be subject to IHT when you die. But most pension arrangements are not included in IHT calculations. To minimise the amount of your assets liable to IHT, it can make sense to use your savings and investments to provide yourself with an income before you take income from your pension. Doing this could save you a huge amount in tax, as less of your estate will be subject to a 40% charge when you die. There’s a lot to think about though, such as the tax position of your potential beneficiaries, so taking expert advice is important. Older pension schemes Key point – may not provide the Having a same death benefits as flexible plan newer schemes, so it’s in place for worth reviewing your taking income in older schemes to check retirement can what they offer. reduce your IHT We can help with this. liability.