Pensions news: page 2
- November 2025
Salary sacrifice pension contributions NICs exemption capped from April 2029
The Government Actuary has set out the effect of the November 2025 Budget measure that caps the National Insurance exemption for salary sacrifice pension contributions at £2,000 a year from April 2029.
- October 2025
Scottish Government submits evidence to independent State Pension age review
The Scottish Government has sent evidence to the independent State Pension age review, citing lower life expectancy in Scotland, pensioner poverty, demographic change and unpaid compensation for 1950s-born women.
Share of pension pots accessed with advice falls to lowest level in six years
FCA retirement income data shows only 31% of the 962,000 pension plans first accessed in 2024-25 were taken after regulated advice, the sixth consecutive annual fall.
- September 2025
Industry alert on unauthorised access to pension scheme members' accounts
The Pension Scams Action Group has issued an industry alert warning trustees and administrators about unauthorised access to pension scheme members' accounts through hacking and impersonation.
- July 2025
MPs call for national strategy to tackle pensioner poverty
The Work and Pensions Committee has called for a UK-wide cross-government strategy on ageing, a Pension Credit take-up strategy for England by the end of 2025 and a Government-set minimum retirement income.
Government abandons PSA-led model for Inheritance Tax on pensions
The government has dropped plans to make pension scheme administrators responsible for reporting and paying Inheritance Tax on unused pension funds, keeping that duty with personal representatives from April 2027.
Government publishes consultation outcome confirming personal representatives liable for IHT on pensions from April 2027
The government has confirmed that personal representatives, not pension scheme administrators, will report and pay inheritance tax on unused pension funds and death benefits from 6 April 2027.
Government relaunches the Pensions Commission
The Government has relaunched the Pensions Commission to examine how future pension savings could be boosted, as MPs separately call for a national strategy on pensioner poverty.
- June 2025
Pension Schemes Bill 2024-25 introduced in Parliament
The Pension Schemes Bill 2024-25 was introduced in Parliament on 5 June 2025, with 12 policies covering local government funds, defined benefit and defined contribution schemes, and the Pensions Ombudsman.
- May 2025
Pensions Investment Review Final Report published with consultation responses
The Pensions Investment Review's Final Report sets out reforms to defined contribution workplace pensions and the Local Government Pension Scheme in England and Wales, with legislation planned in a forthcoming Pension Schemes Bill.
Pensions Investment Review final report published
The government published the final report of its Pensions Investment Review on 27 May 2025, setting out reforms to be taken forward in the Pension Schemes Bill 2024-25.
- April 2025
HMRC to end overtaxing of first pension withdrawals from April 2025
HMRC has changed how tax codes are applied to new private pension withdrawals from April 2025, aiming to stop savers being overtaxed on their first payments.
State pension to rise by 4.1% in April 2025
The state pension rises by 4.1% in April 2025 after July earnings growth was revised up, taking the full new state pension to £230.30 a week and £11,975 a year.
- March 2025
First participant connects to pensions dashboards ecosystem
The first participant connected to the pensions dashboards ecosystem in March 2025, with 700 providers and schemes connected by December 2025, covering over 60 million workplace and personal pension records.
- February 2025
IFS report warns small pension pots risk being lost or eroded by charges
The Institute for Fiscal Studies has warned that millions of small deferred pension pots risk being lost or eroded by charges, and has recommended automatic consolidation of pots under £1,000.
Which? responds to FCA Targeted Support pensions consultation opposing the proposals
Which? has told the Financial Conduct Authority it cannot support the regulator's proposed Targeted Support regime for pensions, citing three concerns and making three recommendations.
- December 2024
Pensions Policy Institute research estimates lost pension pots hold £31.1 billion
Research published by the Pensions Policy Institute estimated that lost pension pots in the UK contained £31.1 billion in assets, with 3.3 million pots separated from their owners.
- November 2024
DISP 2.7.6R updated to extend eligible complainant relationships
The Financial Conduct Authority updated DISP 2.7.6R on 30 November 2024, extending the relationships that make someone an eligible complainant to the Financial Ombudsman Service, including for alleged authorised push payment fraud.
FCA exit communications rules for pensions dashboards take effect
Rules requiring firms to tell customers when they are leaving a qualifying pensions dashboard service, and where they are being sent, took effect on 30 November 2024.
Lifetime allowance charge provisions amended for tax year 2024-25 onwards following abolition of the lifetime allowance charge
Amending regulations have changed tax provisions in three pension statutory instruments for the 2024-25 tax year onwards, following the abolition of the lifetime allowance charge.
Interim report of pensions investment review published
The government published the interim report of its pensions investment review on 14 November 2024, proposing consolidation of defined contribution schemes and changes to the Local Government Pension Scheme.
Pensions Investment Review consultation launched on DC workplace pension reforms
The Department for Work and Pensions and HM Treasury have set out final plans to shrink the number of defined contribution default funds and require minimum scale, with legislation promised in the Pension Schemes Bill.
Labour government considering whether to change auto-enrolment
The Labour government said in November 2024 it would consider if and when to change automatic enrolment, weighing improved pension outcomes against the effects on businesses.
Lifetime allowance charge provisions of the FAS tax regulations removed for tax year 2024-25 onwards
The lifetime allowance charge provisions in the Financial Assistance Scheme tax regulations were removed from 18 November 2024 for the 2024-25 tax year and later years.
- October 2024
Government announces Inheritance Tax reform including pensions measure at Autumn Budget 2024
At Autumn Budget 2024 the government announced that most unused pension funds and pension death benefits will count towards a person's estate for Inheritance Tax from 6 April 2027.
Pension-age Housing Benefit to end from 2026
The Budget confirmed that pension-age Housing Benefit will end, with all new claims for housing costs from 2026 administered with Pension Credit instead.
Technical consultation launched on IHT reporting and payment processes for pensions
The government has published a technical consultation on bringing unused pension funds and death benefits into Inheritance Tax from 6 April 2027, with responses due by 22 January 2025.
Pension withdrawals surge 20% in 2023/24
Savers withdrew more than £52bn from their pensions in 2023/24, a 20% rise on the previous year, according to Financial Conduct Authority data reported on 4 October 2024.
ABI publishes lost pension pot statistics
The Association of British Insurers has put the number of lost pension pots in the UK at 3.3 million, with each one worth an average of £9,470, figures dated October 2024.
Government confirms MoneyHelper dashboard will launch before private sector dashboards
The government has confirmed the MoneyHelper Pensions Dashboard will be made available to the public before private sector dashboards, with six months' notice promised before launch.