The new tax year is here, and upcoming pension changes mean that it’s now a good time to review your retirement plans.
1. Age to access your pension is rising
From April 2028, the earliest age most people can start taking money from their private pension will rise from 55 to 57.
- If you were born on or after 6 April 1971, you’ll generally need to wait until 57.
- Some people with protected pension ages or those retiring due to ill health may still access funds earlier.
This means it’s worth checking your plans now to see if the change could affect your retirement timeline.
2. State Pension age is increasing
Between 2026 and 2028 the age at which you can claim the State Pension will gradually rise from 66 to 67, depending on your date of birth. Knowing your State Pension age helps you plan how much to save privately for retirement. Check your State Pension forecast – GOV.UK
3. Inheritance tax on pensions
From April 2027, unused pension funds and certain death benefits are expected to be counted as part of a person’s estate when calculating inheritance tax for the first time
This could affect how you decide to draw income in retirement. Many retirees currently spend ISAs and other savings first to preserve pension benefits.
Currently, pensions have often been used as an effective way to pass wealth between generations because they usually sit outside the estate for inheritance tax purposes. The proposed change could alter how some families approach retirement and legacy planning.
4. Cash ISA allowance changes
Also from April 2027, the annual Cash ISA allowance for most people under 65 will fall from £20,000 to £12,000.
- Over-65s are unaffected and will still have the full £20,000 allowance.
- This mainly affects those retiring early or wanting to shelter cash savings from tax.
5. Pension dashboards are coming
By October 2026, most pension schemes will be connected to government-backed dashboards – online tools that will let you see all your pensions in one place, making it easier to plan confidently for retirement.
6. Salary sacrifice limits
From April 2029, there is expected to be a cap of £2,000 per year on salary sacrificed into pensions without incurring National Insurance contributions. (Salary sacrifice is when you agree to give up part of your salary in exchange for extra pension contributions, reducing the tax and National Insurance you pay).
- Contributions above this limit will still get income tax relief, but NI may apply.
- Salary sacrifice will remain a very tax-efficient way to save for retirement, especially for higher earners.
What these all mean for you
Pensions remain one of the most powerful tools for retirement and passing on wealth efficiently. These changes don’t necessarily require urgent action, but they highlight the importance of reviewing your pension strategy regularly.
Talking to your Insight independent financial adviser now can help ensure your retirement plans remain on track, make the most of available allowances, and take account of the upcoming rules.
Sources and further reading:
https://www.gov.uk/government/publications/increasing-normal-minimum-pension-age/increasing-normal-minimum-pension-age
Minimum pension age – House of Commons Library
State Pension age timetable – GOV.UK
Pensions to come into scope of IHT as Finance Bill receives Royal Assent – Pensions Age Magazine
Inheritance Tax on unused pension funds and death benefits – GOV.UK
New ISA rules from April 2027: Cash caps and investment changes | MoneySuperMarket
Autumn Budget 2025: Cash ISA limit cut to £12,000 for under-65s
Pensions dashboards: guidance on connection: the staged timetable – GOV.UK
Salary sacrifice reform for pension contributions – GOV.UK
Commons removes Lords’ pension salary sacrifice bill amendments – Pensions Age Magazine
State Pension age timetable – GOV.UK
Disclaimer: information is based on publicly available data and government announcements at the time of writing (April 2026) and may be subject to change.