He added that the Chancellor’s decision was “unfortunate” because he wanted to leave “the maximum possible” to his nephews.

researching now He gifts his retirement pension to them, but he also decided to use more of his retirement wealth to have fun while he could.

“I will spend more. What’s the point of leaving this to the taxman? I will use it to enjoy life and travel. But I also need to make sure I have enough money for primary care.

Mr Harrington, who currently works as a chartered accountant, is now deciding whether to retire to Portugal or even Mauritius.

“You need to get the most out of life, especially when you’ve been careful for years.

“Throughout my working life, I chose not to go on holiday or buy the car I wanted, and now I’m wondering why.”

Sir Steve Webb was pensions minister in 2014 when George Osborne announced “pension freedoms” giving pensioners unprecedented control over how they spend their savings.

He said at the time that the Government was not particularly concerned if retirees “buy a Lamborghini and get a state pension” because it was “their choice”.

Ian Cook of asset manager Quilter believes so Labour’s inheritance tax raid This means Sir Steve’s playful example has now turned into a serious reality.

He said: “If anything will drive people to buy a Lamborghini, it’s this. What’s to stop someone paying £1,000 or £2,000 a month on car finance? It’s not ridiculous anymore.”

He added that around 100 of his 120 clients would be affected by inheritance tax on pensions and that he would advise them to change their behaviour.