Key facts
- The UK government has released a timeline for its most significant pension reforms in a generation.
- A new Value for Money framework will assess pension schemes on investment performance, costs, and service quality.
- Larger pension schemes will begin publishing Value for Money assessments from 2028, with full rollout by 2029.
- A 'scale policy' aims for automatic-enrolment schemes to reach at least £25 billion in assets under management by April 2030.
- Pension dashboards, allowing savers to view all their pensions in one place, must be mandatorily connected by October 31, 2026.
The UK government has unveiled a detailed timeline for what it describes as the biggest pension reforms in a generation, aiming to enhance retirement outcomes for millions of savers. A central component is the new Value for Money framework, developed in conjunction with The Pensions Regulator (TPR), the Financial Conduct Authority (FCA), and HMT, which will require pension schemes to measure and publish their performance against the best in the market.
This framework is designed to address a significant performance gap that currently leaves average pension savers approximately £5,000 worse off over five years. Schemes will be assessed on investment performance, costs, and quality of service, with ratings ranging from red (poor value) to green (outperforming). Poorly performing schemes will face pressure to improve or risk closure, with regulators empowered to issue compliance notices, levy fines, or wind up schemes in serious cases.
The reforms will be rolled out progressively, with larger schemes, including Master Trusts and large single employer schemes, required to publish their Value for Money assessments from 2028. This will extend to all workplace pension schemes by 2029. The government is also seeking industry input on its 'scale policy,' which aims to consolidate smaller schemes into fewer, larger entities. From April 2030, automatic-enrolment schemes in scope must manage at least £25 billion in assets, or £10 billion with a credible growth plan to reach £25 billion by 2035, with the goal of driving down fees and increasing returns for savers.
In parallel, the UK's pension landscape is preparing for other key developments in 2026, including the mandatory connectivity of pension dashboards by October 31, 2026, enabling savers to view all their pension savings in one place. The FCA plans to introduce a targeted support regime in spring 2026 to offer tailored retirement guidance. The Pension Schemes Bill is expected to receive Royal Assent, addressing structural issues in underperforming schemes and consolidating 'small pots.' State pensions will rise in 2026 under the triple lock mechanism, and collective defined contribution (CDC) schemes are set to open to savers. Additionally, pension pots will enter the inheritance tax regime in 2027, prompting reassessments of estate planning strategies.