PIMFA
Pensions
For most people, their pension represents the largest source of wealth that they will accumulate over their lives. In accumulation and decumulation the wealth management, financial advice and planning industry provides a reassuringly regulated and professional service that puts the customer at the heart of everything they do.
This has become increasingly complex for firms over the preceding decade as they have sought to navigate a changing regulatory environment. Despite substantive reforms such as the introduction of automatic enrolment, pension freedoms, changes to pension transfer advice and more, pensions continue to be a subject of reform from Regulators and the Government. Over the coming years we believe that we see more consolidation of pension schemes, further drive towards value for money, and a drive to focus the way in which and where these schemes invest. Where these reforms directly impact PIMFA firms, we will engage on your behalf to secure change in your interests.
- FCA Retirement Income Market Data 2024/25
The FCA has published retirement income market data for 2024-2025, with key findings set out:
- Total number of pension plans accessed for the first time in 2024/25 increased by 8.6% to 961,575 compared to 2023/24 (885,455).
- Sales of drawdown policies saw the biggest increase from 278,977 in 2023/24 to 349,992 in 2024/25 (25.5%).
- Sales of annuities increased by 7.8% from 82,061 in 2023/24 to 88,430 in 2024/25.
- The overall value of money being withdrawn from pension pots increased to £70,876m in 2024/25 from £52,152m in 2023/24. This is an increase of 35.9%.
- 30.6% of pension plans accessed for the first time in 2024/25 were accessed by plan holders who took regulated advice (down from 30.9% in 2023/24).
- The number of DB to DC transfers continued to fall from 7,181 in 2023/24 to 6,418 in 2024/25.
Access the publication here.
- Our Latest work
FCA DP24/3: Pensions: Adapting our requirements for a changing market
PIMFA Responds to FCA DP24/3: Pensions: Adapting our requirements for a changing market
Read the response here
This guide provides a review of the FCA policy statement on pension transfer advice.
Latest News
FCA – Speech: Building the Fourth Retirement Pillar
The FCA has published a speech (by Emad Aladhal, Director of Retail Banking).
Whilst focused on later life lending, it highlights the importance of consumer trust and the role of advice and support throughout the customer journey to enable delivery of good outcomes.
Read the full speech here
DWP has set out Proposed Amendments to
the Occupational and Personal Pension Schemes Regulations 2021
The DWP has set out proposed amendments to the Occupational and Personal Pension Schemes Regulations 2021. The proposals include the introduction of a new red flag for transfers into SSAS where there is no employment link with the receiving scheme. There are proposed relaxations in relation to the first condition, allowing transfers to “reputable” schemes without additional due diligence, as well as the removal of the overseas investment amber flag.
Full details can be found here. The consultation closes on 21 July 26.
For more information email Julia Sage Bell
HM Government: Pension Schemes Act 2026
The Pension Schemes Act 2026 includes provisions about pension schemes and connected purposes.
Read more here.
HM Revenue & Customs Technical Note: Inheritance Tax on Pensions
HM Revenue & Customs (HMRC) has published a technical note to provide clarifications on how inheritance tax on pensions will operate on deaths from April 6 2027:
- Most unused pension funds and pension death benefits will be brought within the value of a deceased person’s estate for Inheritance Tax purposes
This will remove:
- Distortions which have led to pension schemes being increasingly used and marketed as a tax planning vehicle to transfer wealth, rather than for funding retirement
- Inconsistencies in the Inheritance Tax treatment of different types of pensions
This change is effective for deaths on or after 6 April 2027 and where a pension scheme member dies before 6 April 2027, the current rules will apply even if pension benefits are paid to their beneficiaries after this date.
HMRC will share draft guidance with industry stakeholders (expected autumn/winter 2026/2027) and intends to publish final guidance in Spring 2027. HMRC will also update tax manuals for April 2027 with detailed guidance on inheritance tax and pensions.
Read the policy paper here.
