Pensions Expert editor Nick Reeve is looking forward to a Christmas break after suffering from a case of legislation overload. Nobody tell him what’s in store next year, please…
The last Friday Takeaway of 2026 comes to you from my sick bed. My body has evidently had enough pensions legislation for one year, and would like a rest until the new year, please.
And what a year next year promises to be. All the legislation that has been drafted or planned over the past 12 months will begin coming to fruition, with profound effects that will reshape the UK’s retirement landscape.
Collective defined contribution rules will be finalised, and we may see legislation related to fiduciary duty after pensions minister Torsten Bell’s announcement earlier this month. For those working with defined benefit pension schemes, it’s all about what you’re going to do with that funding surplus (if you have one).
For regular defined contribution schemes, the next few years could be transformative. If you’re outside of the handful of schemes already at the government’s desired £25bn ‘megafund’ target, there are existential questions to be answered.
Finally, I am particularly looking forward to the first report from the Pensions Commission. It was interesting to hear Conservative peer Baroness Stedman-Scott lamenting yesterday about the “striking omission” of anything to do with adequacy in the Pension Schemes Bill.
During the second reading of the bill in the House of Lords, the baroness stated: “The uncomfortable truth is that too many people are simply not saving enough to secure a decent standard of living in retirement – a situation made all the more difficult in the current economic circumstances.
“Auto-enrolment was never intended to be the finished article. It was a foundation, not the building itself. Yet the bill proceeds as though the task were complete.”
Government officials will no doubt point to the relaunched Pensions Commission as a clear sign that it knows the job is not done, but it is worth continuing to ask why policymakers don’t take the easy decisions, such as removing the age and earnings limits on auto-enrolment.
I can’t help but agree with Baroness Stedman-Scott when she says: “Adequacy should have been the organising principle of this legislation. Instead, it has been quietly parked for another day… We have failed to address the most basic and consequential question of all: are people saving enough to retire with security and dignity?”
So far, we are collectively falling way short on this crucial question. I hope the commissioners come back from their festive breaks refreshed and ready to help solve one of the defining social issues facing this country.
On that light-hearted note, I hope you all have a fabulous break. Rest, have fun, be merry, warm, and safe, and we’ll see you in 2026.
Nick Reeve is editor of Pensions Expert.
