Key Partnerships urges wider use of later life lending in IHT planning
Key Partnerships has called on wealth advisers to consider later life lending alongside other inheritance tax planning options as investment assets and IHT receipts continue to rise.
Key Partnerships has urged wealth advisers to consider a broader range of inheritance tax planning options as strong equity markets and record investment platform inflows increase the wealth held by older clients.
The referral and partnerships business of Key Group said the FTSE 100 is up around 8% year to date and 52% over the past 5 years, while the S&P 500 has gained around 13% this year and 74% over the past 5 years.
It said the growth has been reflected in investment platform inflows, with total UK platform assets passing £1.3tn last year and quarterly net flows into SIPPs running at around £3bn.
Key Partnerships said more than 4 million people aged 55 and over are believed to invest regularly, representing around a third of all regular investors in the UK.
Nearly half of those aged 55 to 64 are estimated to hold ISAs, rising to 50% among those aged 65 and over.
The company also pointed to Government data showing inheritance tax receipts reached a record £8.7bn in the 2025/26 tax year and are forecast to rise to £14.5bn by 2030/31.
Key Partnerships said the inclusion of unused defined contribution pensions in estates from next year is expected to add further to inheritance tax receipts.
The business argued that later life lending products, including lifetime mortgages, should be considered as part of estate planning where appropriate, with wealth advisers using referral partnerships if they do not have the qualifications or expertise to advise directly.
Damon O’Connell, director at Key Partnerships, said: “Clients are increasingly looking for IHT and estate planning advice and the strength of equity markets allied to record inflows to investment platforms indicate that many will need support.
“Wealth advisers are ideally placed to support clients and with more than four million over-55s investing regularly there is also a significant opportunity to deepen client relationships and provide additional value.
“The concern is that wealth advisers will stick to their area of expertise and not offer access to other relevant IHT planning options such as later life lending as they do not have the qualifications or expertise to advise on them.
“Modern lifetime mortgages and other later life lending products should be considered as part of the mix so that clients receive holistic advice.
“Strong referral partnerships with later life lending specialists ensure clients receive independent whole of market advice which can help deliver good customer outcomes whether they go ahead or not.”
Related
Key Partnerships urges law firms to consider later life lending as part of IHT planning
Air and Mortgage Brain partner to support holistic later life lending advice
Equity Release Council and AMI to host Later Life Lending Summit North
Together joins the Equity Release Council to support greater choice in later life lending
Later life lending up 13.4% in Q2 – UK Finance
Later life lending advice should be part of pension lump sum conversations, says Key
63% of later life clients borrow to help family members, research finds
Key Group expands later life advice service across mortgage options
Inheritance tax receipts reach £3.8bn so far this financial year
more2life launches zero-ERC lifetime mortgage for later life borrowers
Later life advice must include housing wealth
