The new tax year is a useful point to review
A number of pension and tax changes are on the way over the next few years. None of them require immediate action. But each one is a good reason to step back and look at whether your current plans still fit your longer-term objectives.
Below is a summary of what is changing and why each one matters.
1. The age you can access your pension is increasing
From April 2028, the earliest age most people can access their private pension will rise from 55 to 57.
This generally applies to anyone born on or after 6 April 1971. There are some exceptions, including protected pension ages and access through ill health.
If you are working towards a specific retirement timeline, this is worth factoring in early.
2. The State Pension age is rising too
Between 2026 and 2028, the State Pension age will rise from 66 to 67, depending on when you were born.
Knowing exactly when this becomes available helps you work out how much you will need to draw from private savings in the years before it kicks in.
3. Pensions and Inheritance Tax
From April 2027, unused pension funds and certain death benefits are expected to count as part of your estate for Inheritance Tax.
This is a meaningful shift. Pensions have historically been one of the most efficient ways to pass wealth between generations, since they have generally sat outside the estate. The proposed change may influence how you draw your retirement income, particularly if you have been prioritising ISAs and other assets first.
4. Changes to the Cash ISA allowance
From April 2027, the annual Cash ISA allowance for most people under age 65 will reduce from £20,000 to £12,000. People aged 65 and over will keep the full £20,000 allowance.
This matters most for anyone building cash savings within a tax-efficient wrapper, particularly those considering early retirement.
5. Pension dashboards
By October 2026, most pension schemes are expected to be connected to government-backed dashboards.
These will let you view all of your pensions in one place, making it much easier to understand your overall position. For anyone with multiple pensions accumulated over a working life, this will be a welcome simplification.
6. Possible changes to salary sacrifice
From April 2029, a cap of £2,000 per year is expected on pension contributions made via salary sacrifice without National Insurance contributions. Contributions above this level will still benefit from income tax relief, but National Insurance may apply.
Salary sacrifice is expected to remain a highly efficient way to save for retirement, particularly for higher earners, but the change is worth being aware of.
What this means in practice
Pensions remain one of the most effective ways to build retirement income, and historically, to pass on wealth.
None of these changes mean you need to act today. What they do mean is that the rules underneath your plan are moving. A regular review makes sure your approach still fits, as the rules and your circumstances both evolve.
Next steps
If it would help to look at how your current arrangements are structured, and whether they still support your retirement plans, that is what we are here for. A conversation at this stage can give you clarity on timing, tax efficiency and how the different parts of your planning work together.
Sources: HM Treasury and HMRC pension policy announcements. Information based on publicly available data at the time of writing (April 2026) and may be subject to change.