Two out of five investors plan to withdraw more of their pension and either spend or gift the money to avoid inheritance tax, new research reveals.

Pensions are going to become liable for inheritance tax like other assets such as property, savings and investments starting in April 2027.

Some 54 per cent of investors polled by Interactive Investor plan to change financial strategy to stop their retirement fund falling into the hands of the taxman.

Since the pension freedom reforms in 2015, retirement pots have been treated generously by the taxman when people die, and many have boosted their funds with this in mind.

But the Government said in the autumn Budget that it is 'removing the opportunity for individuals to use pensions as a vehicle for inheritance tax planning' by bringing unspent pots into the scope of inheritance tax.

> Are you changing plans after IHT changes in Budget? Take our poll below 

Only the richest 4 or 5 per cent of families currently pay inheritance tax, which is charged at 40 per cent on assets above the key thresholds - though that is expected to rise significantly when pensions start being counted towards the levy.

The Office for Budget Responsibility estimates 31,200 additional estates will become liable for inheritance tax by 2029/30 tax as a result of the change, while a further 121,500 will face an increased bill.

The property boom over recent decades plus frozen thresholds are also dragging more families into the inheritance tax net, and the Treasury is raking in bigger sums as a result.

II's survey of 1,000 of visitors to its site - investors who are likely to be wealthier than the average member of the public - found 52 per cent had previously considered pensions a key part of their estate planning strategy.

A further 23 per cent had thought pensions had a role in their plans to mitigate inheritance tax, but not in detail. Some 25 per cent had not factored pensions into their estate planning at all.

Although the changes to inheritance tax don't come in until April 2027, many people will want to review existing arrangements well in advance.

Some are looking to cash in as much of their pensions as possible while avoiding a big income tax bill, or gift out of surplus income which remains inheritance tax free providing you can afford it, or buy life insurance and put it in trust.

Others are deciding whether to leave more or all of their estate to spouses - who can still benefit from estates free of inheritance tax - instead of their children to delay and minimise the eventual bill.

Wealth manager Evelyn Partners has suggested we could see a marriage boom or rise in civil partnerships among older couples as a result. 

Evelyn's financial planning partner Gary Smith suggested six ways to cut inheritance tax on pensions here.

Meanwhile, II asked investors about their plans in light of the changes and found:

- Some 21 per cent plan to withdraw more money from their pension than they originally intended and spend it

- A further 19 per cent plan to withdraw more and gift it

- Another 8 per cent intend to reduce their pension contributions

- Some 6 per cent plan to retire earlier than they had planned

- The largest cohort, 34 per cent, have not considered changing their retirement or estate planning strategy.

- The 'undecideds' made up 13 per cent of those polled.

Myron Jobson, senior personal finance analyst at II, says: 'Despite uncertainty over how inheritance tax on pensions will be implemented, many people are already considering pre-emptive steps to reduce their future tax burden.

'It’s interesting to see that more people are considering drawing down larger sums from their pensions in response to these changes.

'At first glance, this might seem like a savvy move -accessing funds now to spend or gift before new tax rules come into effect.

'But there are important trade-offs to consider. Withdrawing more than necessary could push retirees into higher tax brackets, resulting in an unnecessarily large tax bill.

'There’s also the risk of depleting pension savings too quickly, leaving less for later life.'