60-second summary: Budget 2026 - pensions matters

John Healey, Chancellor of the Exchequer, delivered his first Budget speech on 28 October 2026. His motto, 'breathing space today and fresh hope for the future' echoed throughout the speech with a focus on easing cost-of-living pressures and enabling business growth. That being the case, expectations were that this Budget would be a relatively low-key affair and, on that basis, the Chancellor didn’t disappoint. For pensions, the highlight was the announcement of a new pension tax allowance for low-income pensioners. The main Budget document (the Red Book) included several other pensions measures.

Our 60-second summary explains the key pensions measures, including:

• The new pension tax allowance for low-income pensioners from April 2027.
• Changes to pension tax rules, including serious ill-health lump sums and lump-sum death benefits.
• Changes to support transfers between drawdown arrangements and retirement-only Collective Defined Contribution schemes.
• The latest on pensions adequacy, including confirmation that the Pensions Commission’s final report will be published in February 2027.

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If you have any questions or would like to discuss further, please get in touch.

This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.