Pensions in 2026: Why clarity and planning matter more than ever

By Morgan Lloyd Technical Director, John Dowding

As we move into 2026, pensions remain one of the most valuable and complex parts of long-term financial planning. While recent years have brought significant change, the key focus this year is not dramatic reform but ensuring existing pension strategies continue to operate as intended.

For many, pensions have quietly grown in value, often spread across multiple arrangements built up over a working lifetime. In 2026, understanding how those pieces fit together is becoming increasingly important.

In this article we explain what has changed, what has not, and what is worth checking this year, to ensure that any decisions you make about your pension are calm, informed, and aligned with your wider financial plan.

A clearer picture of your pensions

One of the most talked-about developments across the industry is the continued rollout of pension dashboards. These are designed to provide individuals a clearer view of their pension savings, all in one place, including arrangements they may have lost track of over time.

While dashboards are not a replacement for advice, they are expected to make conversations with advisers more informed and more efficient. Having a clearer picture of what you hold allows planning decisions to be made with confidence, rather than assumptions.

What to discuss with your adviser:

• Whether you have pensions you may have lost track of
• Whether bringing information together would improve planning decisions
• How visibility over all pensions could affect your retirement plans

Pension allowances still matter

Although the lifetime allowance has been removed, pension tax limits have not disappeared. Annual contribution limits and other rules still apply, and these continue to shape how pensions should be used alongside other tax-efficient investments such as ISAs.

In 2026, many clients are reviewing whether their contribution levels remain appropriate.

What to discuss with your adviser

• Whether your current pension contributions remain appropriate
• Whether unused allowances from previous years could be relevant
• How pension saving fits alongside ISA and other investment planning

Small changes made early can improve flexibility and tax efficiency over time.

Pensions as part of the wider financial plan

One of the most common misconceptions is viewing pensions in isolation. In reality, pensions should sit comfortably alongside other assets, income plans, and long-term goals.

We are seeing more clients focus on:

• How and when pension income might be accessed
• Whether multiple pension pots should be simplified
• Ensuring beneficiaries and death benefits remain up to date

What to discuss with your adviser

• When you may want to start taking pension income
• Whether multiple pension pots could be simplified
• Whether beneficiaries and death benefit nominations are still correct

These reviews do not need to be rushed, but regular check-ins can prevent last-minute decisions later on.

Inheritance Tax changes could reshape pension planning

From 2027, proposed changes to the way pensions are treated for IHT purposes are expected to have a significant impact on estate planning. For many, this could alter how death benefits are taxed and how pensions fit into their wider IHT strategies. While the details are still being finalised, this is a major shift that could affect long-term plans – and it's essential to start conversations with your adviser now to prepare.

What to discuss with your adviser

• How upcoming Inheritance Tax changes could affect your pension and estate planning
• Whether your current death benefit nominations remain appropriate in light of these changes
• Whether your wider estate planning strategy needs to be adjusted to maintain tax efficiency

Looking ahead with confidence

Pensions remain one of the most effective and tax efficient ways to plan for later life, but their value lies not just in how much is saved, but in how well they are aligned with your wider financial objectives.

A conversation with your adviser can help ensure your pension arrangements continue to support your plans, not complicate them. As we move through 2026, clarity and structure will be just as important as performance.

Morgan Lloyd works closely with advisers to support informed, well-structured pension planning, helping clients make confident decisions about their financial future.

John Dowding
Technical Director, Morgan Lloyd.