What's happening to your pension?
In the world of personal finance, pensions can sometimes feel like a moving target. With shifting regulations and legislative updates, keeping track of what is changing and when can feel overwhelming.
Whether you’re planning your early retirement, organising your legacy, or simply checking on your long-term savings, understanding these updates helps ensure your money keeps working as hard as possible for your future.
Here’s a breakdown of the key pension changes planned between now and 2029, and what they could mean for you and your financial plan.
October 2026: Pension dashboards connect to a central system
Moneybox has already connected to the national pension dashboard system ahead of the October 2026 deadline, wherein all pension providers and schemes across the UK are required to connect.
What it means for you
If you’ve changed jobs a few times throughout your career, you likely have multiple pension pots scattered across different providers. Right now, the responsibility of tracking down lost pensions lies with you.
Once the dashboards system goes live, it will be significantly easier to search for and view all your pension savings in a single, secure digital space. You’ll be able to see the estimated value of your pots and where your money is held, giving you full visibility over your overall retirement picture. I tested my dashboard recently, and it’s looking great.
They have committed to 27/28 for release and we expect an update from the Pensions Minister in autumn.
In the meantime
Our handy pension search tool makes it easy to track down old pensions. Simply add the name of your previous employer and the dates you worked there for instant results.
While we try our best, we cannot guarantee search results.
April 2027: Pensions subject to inheritance tax
From 6 April 2027, most unused pension funds, remaining drawdown funds, and pension death benefits will be included in the calculation of your estate for inheritance tax (IHT) purposes. Historically, pensions sat outside your estate for IHT, making them a popular wrapper for passing down wealth tax-efficiently.
What it means for you
If your total estate (including property, savings, and now unused pensions) exceeds the available tax-free allowances, any surplus value left to non-exempt beneficiaries could be subject to inheritance tax.
Spouse exemption: Transfers of unused pension funds to a surviving spouse or civil partner generally remain exempt from IHT. However, whatever unused pension funds remain when the second spouse dies, will be evaluated as their estate.
Estate planning: If you’re planning to pass pension wealth on to children or grandchildren, you may want to review your overall drawdown strategy with an expert to see how this change impacts your estate.
You can access free financial guidance from Pension Wise or pay to speak to a private financial advisor.
Nominate your beneficiaries
Nominating a beneficiary tells your pension provider who you would like to receive your money when you die.
Taking a few minutes to confirm your beneficiaries gives you more clarity over where your hard-earned wealth is going. You can update your details directly in the app at any time by heading to Settings > Tap your name > Beneficiaries.
April 2028: Minimum pension age rises to 57
From April 2028, the minimum pension age – the earliest age you can access your private pension savings – is rising from 55 to 57.
What it means for you
If you were born on or after 6 April 1971, you will need to wait until age 57 before accessing your private pension pots. If you’re currently planning for early retirement or hoping to take a lump sum around age 55, check your target retirement date and pension agreements to ensure your timeline stays on track.
April 2029: Changes to salary sacrifice National Insurance relief
Starting in April 2029, National Insurance (NI) exemptions on employee salary sacrifice contributions will be capped. Only the first £2,000 of employee pension contributions made through salary sacrifice each year will remain exempt from NI.
What it means for you
Salary sacrifice is a popular way to pay into a workplace pension, as it reduces both income tax and NI liabilities. If you contribute more than £2,000 per year through salary sacrifice, the amount above this threshold will no longer benefit from NI relief. While your pension contributions will still receive full income tax relief, you may want to review your contributions closer to 2029 to ensure your payment methods remain optimised.
Next steps for your retirement planning
Keeping on top of pension rules ensures you stay in full control of your financial journey.
If you want to get ahead:
Track down old pots: Check for any previous workplace pensions with our pension search tool, so you’re ready to combine should you choose to.
Review retirement goals: If you're planning an early retirement, ensure your timeline accounts for the age 57 threshold.
Consider expert guidance: If you're unsure how upcoming tax changes could impact your estate, consider speaking with an independent financial adviser.