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2026/27: The year your pension needs a check-up
P
ensions used to be boring. Until 2015, you paid into a personal pension during your working life and, when you retired, you could take up to 25% of the fund as a tax-free lump sum. The remaining amount then had to be used to buy a guaranteed taxable income for life – whether you needed it or not! This wasn’t always ideal for dentists. Many wanted to access their tax-free lump sums at retirement to pay off their mortgage or go on a holiday of a lifetime. Being forced to take guaranteed income at the same time (when many already had a substantial NHS Pension) often led to excess income, unnecessary tax and money sitting in unused savings accounts.
The impact of pension freedoms
Then came pension freedoms in 2015, allowing people to access their pensions in a flexible way that suited them. Want to take just the tax-free lump sum and leave the remaining fund invested? No problem. Want to increase your income by £1,000 per month until you receive the State Pension and then reduce it? Fine. Since then, with the right professional advice, dentists have been using pension funds built up from private income to support retirement lifestyles truly tailored to them. Tax treatment depends on individual circumstances and may be subject to change in future.
Why pensions became powerful estate planning tools
Pensions provide many tax advantages: • Contributions attract tax relief at your highest marginal rate • The fund grows free from income tax and capital gains tax • Any remaining pension funds on death have historically fallen outside the estate and therefore did not attract inheritance tax Over the years, I’ve met dentists with significant private pension funds who had no further need for capital or income
and were planning to pass pensions to their dependants – avoiding the 40% inheritance tax bill that many of their other assets would face.
The 2027 rule change
From 6th April 2027, most unused pension funds and death benefits will fall into people’s estates on death and may be subject to inheritance tax. The theory behind this change is that pensions are designed for retirement planning, not wealth transfer. Unfortunately, for many people, pensions are one of their two largest assets (alongside property), so this will significantly increase the value of taxable assets. Please note the Financial Conduct Authority (FCA) does not regulate inheritance tax planning and trusts.
Why dentists are particularly affected
This change is likely to impact dentists disproportionately compared to many other professions. In recent years, increasing numbers of private dentists have left or reduced their NHS Pension entitlement and have wisely built significant personal pension funds from private income instead. While there is no universal solution, as everyone’s circumstances and estates are different, there are several key areas for most people to consider when planning their finances.
Key planning considerations
1. Look at the whole estate Consider your entire estate, not just your pension. There are several exemptions that can be used to mitigate inheritance tax during your lifetime. Ensure they’re used as effectively as possible, using savings and investments as well as pensions. 2. The £2 million threshold trap If your estate exceeds £2 million, your Residence Nil Rate Band is reduced by £1 for every £2 over this threshold. This
means a married couple’s potential joint nil-rate allowance could fall from £1 million down towards a minimum of £650,000, significantly increasing the taxable estate. 3. Don’t forget income tax Personal income and some pension death benefits are subject to income tax. Any resulting income tax may negate inheritance tax savings – for example, if you use your pension fund to buy an annuity rather than leaving it invested. 4. Be careful with tax-free cash decisions Understand your objectives and total assets before accessing tax-free cash, particularly if you plan to do so earlier than originally intended. Many pension decisions made at retirement are irreversible – especially taking tax-free cash. 5. The age 75 rule After age 75, pension death benefits become subject to income tax in the hands of beneficiaries, in addition to inheritance tax. This must form part of any effective estate planning strategy.
Act early, plan properly
It’s essential that you take professional advice to determine the best way forward for your unique circumstances. Review your pension arrangements well before April 2027 to ensure you don’t make a very expensive mistake with one of your biggest assets. n
To speak to a Specialist Financial Adviser from Wesleyan Financial Services, visit wesleyan.co.uk/dental or call 0808 149 9416. Charges may apply. You will not be charged until you have agreed to the services you require and the associated costs. Learn more at wesleyan.co.uk/charges. We s l e y a n Financial Services Ltd ( R e g i s t e re d i n E n g l a n d a n d Wa l e s N o . 1651212) is authorised and regulated by the Financial Conduct Authority. Registered O ff i c e : C o l m o re C i rc u s , B i r m i n g h a m B 4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.
About the author Having vast experience as a dental Specialist Financial Adviser (SFA) over the years, Simon Cosgrove is now a Dental Regional Manager at Wesleyan Financial Services, guiding a team of dental SFAs to support dentists, their families, and their practices with financial planning to secure their financial future.
Over 60% of dental searches now show an AI answer before any website listings
D
ental practices across the UK are seeing a change that is easy to miss. Websites may still be receiving visits, but the quality of enquiries is shifting. Fewer high-intent private patients are coming through, and some practices are finding themselves less visible online despite demand for private dentistry continuing to grow. In a recent industry study, published in January 2026, over 60% of dental-related searches triggered an AI-generated answer before any traditional website listings were shown. This means many patients are forming opinions and making shortlists without ever clicking through to a practice website.
The core issue is not technology. It is clarity. For most practices, this change has not been obvious. There has been no sudden drop in traffic and no warning message from Google. The shift has happened quietly, in the background, as AI systems increasingly decide which practices are clear enough to be shown and which are skipped.
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Many dental websites were built to look professional and welcoming, but not to clearly explain what the practice does best. Treatments are often grouped together on a single page, listed as a menu rather than explained. From a patient perspective, this can feel convenient. From an AI perspective, it creates uncertainty.
When everything is offered, nothing stands out. AI systems need to understand whether a practice is known for implants, Invisalign, nervous patient care, emergency dentistry or general family dentistry. When that information is not clearly separated and explained, the system struggles to confidently surface the practice as a recommendation. This is why two practices on the same street can experience very different visibility. One may appear regularly in AI-generated answers, while the other is rarely mentioned, despite offering similar services and having a welldesigned website.
Design alone is no longer enough. A visually impressive website does not automatically explain who the practice is for, what problems it solves, or why it should be chosen. AI systems prioritise clear explanations over polished visuals. If the message is unclear, the practice becomes easy to overlook. We are also seeing practices lose visibility simply because they do not clearly state who they are and where they are based. Information that feels obvious to a human reader still needs to be stated plainly. Practices that clearly explain their location, their focus and the type of patients they help are far more likely to be recognised and surfaced. There are simple, practical changes practices can make. Each main treatment should have its own dedicated page that explains what it is, who it is suitable for and why the team is experienced in providing it. The homepage should clearly describe the practice in plain language, including location and special interests. Business details should be consistent wherever the practice appears online. Common patient questions around
cost, suitability and comfort should be answered clearly, not assumed. None of these changes require a full website rebuild. They require a shift in thinking. Your website is no longer just a digital brochure. It is a source of information that AI systems rely on to decide whether your practice is relevant. AI-generated answers are already shaping how patients choose their dentist. This is not a future trend. It is happening now, quietly influencing visibility and patient flow. Practices that improve clarity now are placing themselves in a stronger position for the next few years. Those that do not may slowly lose visibility without understanding why. In 2026, being found is no longer just about looking good online. It is about being clearly understood. n
About the author Jay Dickens is Business Growth and Marketing Strategist at Connect My Marketing.
The Probe | March 26
04/03/2026 22:47:48