Pensioners are being urged to act quickly to protect their finances ahead of possible tax changes in Rachel Reeves’ upcoming Budget. The Chancellor will unveil her Budget on Wednesday, November 26, with speculation already growing about potential rises to income tax, national insurance, or VAT. Concerns have also been raised that inheritance tax and pension rules could be tightened as part of efforts to plug a £30billion gap in public finances.
While Labour pledged not to raise taxes in its manifesto, Reeves has refused to rule out changes, and some experts believe pensioners could be among those most affected. One inheritance expert has warned people over 55 to take action now or risk losing out later. Andrew Byers from end-of-life planning firm SafeKeep told MEN: “Pensioners could miss out financially if they fail to get organised before potential changes to inheritance and pension rules take effect.
“New data suggests 40% are worried about upcoming changes to pensions and inheritance tax, and a further 23% of Brits are already planning to give away money to reduce their inheritance bill.
“While the Government has reaffirmed the state pension triple lock, ensuring payments rise by around 4.8% from April 2026, the Treasury is also expected to explore ways to raise funds through targeted reforms, such as tightening inheritance tax thresholds, revisiting pension tax-free withdrawals, or adjusting long-standing gifting rules.
“That’s why pensioners and families need to act now to get budget-ready ahead of impending tax changes from November.”
Mr Byers has listed six key steps pensioners can take now to prepare, and in some cases, potentially save thousands of pounds.
The first is to check for unclaimed Premium Bond prizes, with more than £105 million sitting unclaimed as of September 2025.
He said: “With 22.7 million Britons holding Premium Bonds, or 52% of adults, an estimated 6.7 million pensioners are likely to own them.
“To ensure your loved ones receive what’s owed, keep your bond details clearly recorded among your financial documents and make sure your NS&I online account is accessible.”
He also urged people to trace lost pensions, warning that more than 3.3 million unclaimed pension pots exist, each worth an average of £13,620 for those aged 55-75.
Mr Byers said: “Digitising your documents now can save your family stress, delay, and potentially thousands in unclaimed funds and legal costs later on.”
Another key area is inheritance tax. Mr Byers explained: “With inheritance tax thresholds frozen since 2009, more families are being drawn into the tax net as property and pension values grow.
“For example, using the £3,000 annual gifting exemption for two spouses over five years can remove £30,000 from an estate, avoiding up to £12,000 in inheritance tax at current rates.”
He also pointed to current wedding gift rules, which allow tax-free gifts of £5,000 to a child, £2,500 to a grandchild, or £1,000 to others.
Mr Byers said: “With potential changes to gifting and inheritance rules expected in the Budget, acting now helps ensure your generosity remains tax-free and protected from any future limits.”
Finally, pensioners are being warned to review their income ahead of the 4.8% state pension rise from April 2026.
This will take the full pension to £12,530 per year, just under the personal tax allowance of £12,570.
Mr Byers said: “An additional 2.7 million pensioners could fall into the higher or additional-rate tax bands over the next two years. A quick review now could prevent an unexpected tax bill next spring.”