Buckle in for another year of upheaval

If you were hoping for a quiet year in pensions, think again. The juggernaut of change shows no sign of slowing in 2026. From state pension debates to FCA interventions and dashboard deadlines, advisers need to buckle in for another frantic year.

State pension: still in the spotlight

Expect headlines. The full state pension will rise by 4.8% to around £12,547 from April – dangerously close to the personal allowance and set to overtake it in 2027. That’s already sparking debate on fairness and tax treatment.

The age question will dominate too. From April, the state pension age starts its gradual climb to 67 by 2028. Dr Suzy Morrissey’s report on the framework for future increases will fuel speculation about whether the increase to 68 should be brought forward.

The Pension Commission review

The new Commission will examine UK pensions through to 2050, focusing on adequacy of savings for low-income and high-risk groups. But don’t expect fireworks: it won’t recommend changes to state pension age or the triple lock. We hope, however, that it looks beyond workplace pensions to property and other savings, as well as consider the impact on the self-employed of phasing out the lifetime ISA.

FCA’s targeted support

The FCA’s final rules on targeted support, which could start from April, aim to bridge the gap between regulated advice and guidance for those making complex decisions without professional help.

Workplace pension reform

Meanwhile, the Government presses on with workplace pension reforms:

• Megafunds: transition continues toward the 2030 target.

• Value for money: the FCA’s next consultation may replace the simple traffic-light system with something more nuanced.

• Guided retirement: default pension benefit solutions are in scope, but the original 2027–28 timetable looks ambitious.

Deadlines and new proposals

• Pensions dashboards: schemes must connect by 31 October 2026. Launch expected early 2027.

• FCA proposals: two new consultations for pensions – one helpful (simpler projection tools), one controversial (rules that could delay transfers for non-advised customers and harm outcomes).

Your next steps:

• Prepare clients for state pension changes and rising age thresholds.
• Track dashboard deadlines.
• Assess potential impact of new FCA transfer rules on client outcomes.