Warning to anyone with a pension as millions unaware of major change

Over half of adults in the UK are unaware of upcoming pension policy changes which could have a major impact on their retirement plans, according to a new report. Analysis from Schroders Personal Wealth (SPW) published on Monday revealed a gap in such knowledge among 51% of 1,500 adults surveyed.

The findings highlight what SPW described as "a critical disconnect", with many people planning for retirement based on outdated assumptions around Government policy. These include a rising state pension age, the inclusion of defined contribution pensions in inheritance tax (IHT) from April 2027 and the potential 2025 Pensions Bill. SPW said all of these "could dramatically reshape" retirement timelines and financial futures.

The financial advice firm, which is backed by Lloyds Banking Group, said the lack of awareness around such pension changes is one part of a wider problem, that being a lack of preparedness for retirement.

Among its findings, SPW pointed to survey results showing almost half of UK adults (43%) don't have an up-to-date financial plan and more than a quarter (26%) have no retirement plan in place at all.

Mark Duckworth, SPW's Chief Executive, said: "This report is more than a snapshot of public sentiment - it's a call to action. Retirement should be a time of freedom, fulfilment and peace of mind, yet for many the path is paved with uncertainty."

Alex Gaita, Financial Planning Director at SPW, said: "Even though some of these changes may feel like they are far away, it is hugely important to take into account both short-term and long-term factors when building a robust financial plan.