UK pension changes: what has been announced and when

UK private pension changes already set in law start from April 2027, with more announced at the 28 October 2026 Budget. Dates and status are below.

Some of these changes are law, some are announced and waiting for a Finance Bill, and some depend on regulations not yet made. Which ones touch you depends on your age, your pots and what you plan to leave behind. Wondering which of these dates apply to you? An FCA-authorised adviser can sort the relevant ones from the rest on a phone call, free of charge, once your details reach them through this page's enquiry form.

UK private pension changes by date

The table lists each change in the order it takes effect, with where it stands today (1 November 2026).

Each row is explained in the sections that follow. Where a rule varies by scheme, the section says so.

Are private pensions going to be taxed?

The tax change in law for private pensions is on what you leave: an unused pot becomes part of your estate for inheritance tax. The Finance Act 2026 says a scheme member "is treated as beneficially entitled immediately before their death to property (“notional pension property”)", and the rule applies to deaths on or after 6 April 2027. Who pays, on what and how much is in the guide to pensions and inheritance tax.

The tax-free lump sum is a separate matter: GOV.UK's lump sum allowance page gives the usual maximum as 25% of the pot and a £268,275 cap. The tax-free lump sum guide covers how that works.

The 28 October 2026 Budget also announced a tax change to death benefits, which is not yet law. The government plans to remove the two-year rule so that beneficiaries "will no longer be taxable solely because tax-free pension and lump sum death benefits are paid more than two years after the member’s death". If Finance Bill 2026-27 passes as announced, this would cover payments made on or after 28 October 2026. The pension death benefits guide explains who can receive what.

Weighing the 2027 inheritance tax change against the tax-free lump sum for your own estate is something an adviser can work through with you if you request a phone call using this page's form.

What did the 28 October 2026 Budget announce for pensions?

Besides the two-year rule, the Budget document set out these pension measures. None is law yet: three are for a Finance Bill, and the Triple Lock change is planned for the next Parliament.

• Pension Tax Allowance. The plan is that pensioners whose total income is at or below the full new State Pension should not have to pay small amounts of tax. The Treasury says the allowance applies "from 6 April 2027 until 5 April 2030", is for people over State Pension age with income "regardless of source" at or below that level, and tapers away for incomes just above it. It will be legislated in Finance Bill 2026-27, and arrangements after April 2030 will be considered later.
• Triple Lock. From April 2030, the State Pension is to rise each year by the highest of 2.5%, inflation, or the amount needed to hold its value relative to earnings as reached in April 2029. This is a plan for the next Parliament, not a rule yet. The Triple Lock guide explains the current rule.
• Terminal illness. The tax definition used for pension access is to change so that terminally ill people can reach their savings more easily, and doctors abroad can provide the medical evidence. This is also for Finance Bill 2026-27.
• Guided retirement and retirement-only CDC schemes. Changes to support the new guided retirement framework and retirement-only collective defined contribution schemes are for Finance Bill 2027-28.

Until each measure is passed into law, treat its date as the government's plan, not settled law.

Are SIPP rules changing?

The table has no separate SIPP row because the changes are written as pension and tax rules, not rules for one product. The minimum pension age rise to 57 and the inheritance tax rule are the two most likely to matter to a SIPP holder, and the guide to taking a pension at 55 covers the age change.

HMRC's 2021 policy paper on the change says: "The legislation introduces an increase in the NMPA to 57 from 6 April 2028." NMPA is the normal minimum pension age, and some people keep a protected earlier age or retire through ill-health, so the rise does not hit everybody. Each SIPP provider sets its own terms on death benefits and access, and an adviser can explain how your plan treats that during a free call-back.

If you invest through a SIPP, the value of investments can fall as well as rise and you may get back less than you put in. The SIPP guide sets out how they work.

Which pension changes are already law?

The State Pension age rise and the minimum pension age rise were set in law years ago. Of the newer changes, two are law, plus a large Act whose start dates are mostly still to be fixed.

Inheritance tax on unused pensions is law through the Finance Act 2026, which received Royal Assent on 18 March 2026. Section 71 says the changes apply "in relation to deaths, and (so far as relevant) to other transfers of value within the meaning of IHTA 1984, occurring on or after 6 April 2027".

The salary sacrifice cap is law through the National Insurance Contributions (Employer Pensions Contributions) Act 2026. Its amendments "have effect for the tax year 2029-30 and subsequent tax years", and the first regulations "must specify the contributions limit as £2,000 for a tax year". Who is hit and what stays untouched is in the salary sacrifice changes guide.

The Pension Schemes Act 2026 is dated 29 April 2026. It gives powers and duties that begin later, often "on such day as the Secretary of State may by regulations appoint". Three parts matter to savers:

• Value for money. Regulations may require some pension schemes to publish value-for-money assessments of how they perform.
• Small pots. Regulations may move small dormant pots in auto-enrolment schemes into consolidator schemes. A pot counts as small if it is "£1,000 or less (but is not nil)" and dormant if nobody has paid in during a prescribed stretch of 12 months or more. This chapter came into force when the Act was passed, but it works through regulations, which set how and when pots move. See small pot pension rules.
• Guided retirement. Trustees or managers of relevant schemes must design and offer default pension benefit solutions to eligible members, from a date set by regulations.

Because the Act leaves most start dates to regulations, a workplace pension may well look the same this year as last. Your scheme or provider can tell you when its own arrangements will change, and the workplace pension rules guide explains what already applies.

What about the State Pension?

The State Pension is a separate system from private pensions, but the same Budget touched it. The age at which it starts is rising: GOV.UK's timetable says "The State Pension age for men and women will now increase to 67 between 2026 and 2028." A third review of State Pension age was launched in July 2025, and the Pensions Act 2014 requires one at least once every 5 years, so the timetable beyond 67 could still change.

Check your own age on GOV.UK rather than guessing from your birth year, and read the State Pension guide for how the payment works. The Triple Lock change in the table is for April 2030 onwards, so it does not change the rise you receive before then.

What could still change?

The Budget of 28 October 2026 says the Pensions Commission's final report is due the following year and will "recommend steps to ensure the private pensions system delivers retirement outcomes that are adequate, fair and sustainable". Its recommendations would not be law when published; they would need a decision, then legislation.

Proposals from politicians or commentators about taxing pensions differently are not announced policy until they appear in a Budget document, a Bill or an Act. If a change you read about is not in the table above, check GOV.UK before acting on it. Pension Wise offers free, impartial guidance on your options, and if a pending change worries you before the Finance Bills pass, this page's short form takes only contact details, and an adviser then goes through your pots and tax position by phone.

Pension changes: six quick answers

Are pension rules changing in 2027?

Yes, in two ways. On 6 April 2027 unused pensions come into inheritance tax for deaths on or after that date, and the Pension Tax Allowance is due to start for pensioners. The second still needs Finance Bill 2026-27 to pass.

What is the Pension Tax Allowance?

It is an announced allowance so that pensioners with total income up to the full new State Pension are not brought into paying small amounts of tax. It is planned for 6 April 2027 to 5 April 2030, with a taper above that level.

What is the two-year rule for death benefits?

It made some tax-free pension death benefits taxable when paid more than two years after the member died. The Budget announced its removal for payments made on or after 28 October 2026, but that still needs Finance Bill 2026-27 to pass.

When does the minimum pension age rise to 57?

It rises from 55 to 57 on 6 April 2028, according to HMRC's policy paper. Protected pension ages and ill-health retirement are exceptions, so check your scheme.

What is guided retirement?

It is a framework in the Pension Schemes Act 2026 under which relevant schemes must offer default ways of turning a pot into income. When it starts depends on regulations, and what each scheme offers will vary.

Is the salary sacrifice cap in force yet?

The Act is law, but its amendments only have effect from tax year 2029-30. Until then the cap does not apply.