By David Brooks, Head of Policy at Broadstone
Summary
As the Autumn Budget 2026 approaches, rumours about pension changes are growing. David Brooks, Head of Policy at Broadstone, explains how trustees, sponsors and savers should focus on preparing for confirmed changes to Inheritance Tax and pension access ages, rather than acting on speculation.
Another Autumn Budget is approaching, and with it comes a familiar feature of the pensions calendar: rumour season.
Especially after the pension changes from this summer, there’s once again speculation about pension tax-free cash being cut or scrapped, alongside possible changes to tax relief. We’ve heard it all before, and nobody knows what the Chancellor will actually announce on 28 October.
The danger is that these rumours encourage savers to make decisions they may regret, while leaving trustees and sponsors fielding unnecessary concerns from members.
My message is simple: don’t make a permanent decision based on a temporary headline.
Focus on the pension changes we already know about
Rather than trying to predict what the Chancellor might announce, there are two confirmed pension changes that deserve attention.
1. Inheritance Tax changes from 6 April 2027
Most unused pension funds and pension death benefits will be brought within the scope of Inheritance Tax. This will have practical implications for both pension schemes and their members:
- Trustees and administrators should prepare for new requirements around valuing death benefits and sharing information with personal representatives.
- Savers may wish to review their beneficiary nominations, wills and estate planning arrangements to ensure they still reflect their wishes.
2. Minimum pension access age increases from 6 April 2028
The Normal Minimum Pension Age will rise from 55 to 57, changing when most people can access their pension savings. However, some members will retain protected pension ages.
- Trustees and administrators should identify which members may be affected and ensure communications clearly explain the changes.
- Savers, particularly those planning to access their pensions at 55 or 56, should check whether the new rules will affect their retirement plans.
Unlike Budget rumours, these changes have a confirmed timetable. There is no need to wait until after the Budget to start preparing.
Review your plans – don’t react to rumours
If the approaching Budget has prompted you to think more about pensions, that’s not necessarily a bad thing. There’s plenty worth reviewing without trying to predict what the Chancellor might announce.
Here’s where I’d suggest focusing your attention:
- Trustees and sponsors: Make sure schemes are preparing for confirmed legislative changes, and that member communications clearly distinguish facts from speculation. Be ready to answer questions without encouraging rushed decisions.
- Savers: Check what you’ve saved, when you can access your pension and whether your retirement plans remain on track. Seek appropriate financial advice before making significant changes.
Nobody knows yet whether the Chancellor will announce changes to pension tax-free cash or tax relief. Rather than getting caught up in another round of speculation, I’d encourage everyone to focus on what they can actually control.
Key takeaways: how to prepare ahead of the Budget
- Avoid acting on speculation. Trustees and sponsors should avoid unnecessary changes to scheme arrangements based on unconfirmed proposals, while savers should be cautious about making significant retirement decisions in response to rumours.
- Prepare for pension Inheritance Tax changes. Trustees and administrators should review death benefit administration processes ahead of April 2027, while savers can consider whether their beneficiary nominations and estate planning arrangements remain appropriate.
- Check pension access ages. Schemes should identify members potentially affected by the April 2028 increase and review any protected pension ages, ensuring administration processes and member communications are ready.
- Keep members informed. Trustees and employers should provide clear, factual communications about confirmed changes, helping members understand what is known and where they can seek further guidance.
Get in touch with our Pensions Administration & Advisory team
Broadstone supports pension trustees and sponsoring employers with the advice, administration and governance expertise needed to navigate regulatory change, prepare for new requirements and communicate effectively with members.
