Navigating pensions reform

Four key developments shaping pensions reform in 2026, and beyond

Long-anticipated changes to UK pensions are now becoming reality, bringing greater transparency and more exacting expectations around governance and value.

What does this mean for employers?

From the rollout of pensions dashboards to closer scrutiny of defined contribution (DC) schemes, businesses are facing increased regulatory attention over how workplace pensions are run and experienced by employees.

Over the next 12 months, preparation and effective oversight will, consequently, matter more than ever.

One of the biggest changes on the horizon is the introduction of pensions dashboards, which allow individuals to see their state pension, alongside their workplace and personal pensions.

By bringing pension savings together in one place, dashboards will make it easier for employees to see what they have, ensuring pots are not lost or forgotten, and to plan more confidently for retirement.

Pension schemes are being connected to dashboards in phases, with timings varying depending on their size and type.

From a governance perspective, however, all schemes must ensure member data is accurate and up to date. In practice, this means reviewing key identifiers, such as names, dates of birth, addresses and National Insurance numbers, well in advance.

With dashboards making it easier to see and review pensions, more questions can also be expected from employees. Concerns may be raised or clarifications sought, particularly if pensions appear to be underperforming. Good, clear communication and appropriate support will consequently prove essential.

The Pension Schemes Bill, which is expected to receive Royal Assent this year, strengthens the rules around how workplace pensions are run. Its focus in on ensuring that DC schemes deliver real value, beyond minimum standards.

Under the new framework, regulators are moving beyond headline charges to take a more rounded view of value.

Increasingly, schemes will be judged on a combination of investment performance, governance and the experience they provide to members. They’ll also have to be compared against common benchmarks.

The Pensions Regulator will have clearer powers to intervene where schemes fall short.

For employers, this increased scrutiny raises important questions about whether a scheme continues to offer good value as it grows, how it compares with alternatives, whether the default investment strategy remains appropriate for the workforce, and whether charges are reducing in line with scale.

Pension health checks allow businesses to review the performance of their schemes and assess whether they’re still offering good value.

The bill also tackles the growing problem of small pension pots. As employees move between jobs, many accumulate multiple deferred pensions that are easy to lose track of and difficult to manage.

New consolidation measures aim to bring these small pots together within authorised consolidator schemes, making them easier to track and manage. Wider reforms are encouraging larger, multi-employer schemes.

This drive for consolidation has wider implications for provider choice. Rising regulatory demands are placing pressure on smaller schemes, while larger master trusts continue to grow in scale.

While greater scale can support lower charges, improved oversight and access to a broader range of investment opportunities, remaining in a legacy arrangement that no longer meets regulatory or value-for-money expectations can expose employers to increased scrutiny and missed opportunities.

As the provider landscape narrows, employers need confidence that their scheme remains competitive and resilient, making whole-of-market reviews an increasingly important part of pension governance.

In response to a growing recognition that many people want more than generic guidance – but are unwilling or unable to seek personalised advice – the Financial Conduct Authority (FCA) is planning to introduce a new targeted support scheme.

Expected from April 2026, this will allow authorised firms, such as employers working with a workplace pension scheme, pension providers and banks, to offer pension suggestions to groups of individuals who share similar needs or characteristics, so that they’re in a ‘better position’ to make decisions.

For employers, targeted support could play an increasingly important role as employees engage more actively with their pensions through their dashboards and seek reassurance about next steps.

Targeted support comes with clear boundaries, however. It must be clearly labelled, designed for defined groups rather than individuals, and be supported by robust governance and monitoring.

As the regulatory framework develops, employers should consider how well their pension arrangements and providers are equipped to support employees in what will be a more transparent environment.

Pensions administration today requires greater accuracy and control than ever before, as regulatory demands increase. Accurate enrolment, effective management of contributions and robust reporting play a vital role in meeting compliance obligations.

Modern pensions administration processes, which are supported by appropriate technology, help employers stay compliant with auto-enrolment duties and adapt quickly to changes in eligibility or thresholds. It also helps to prevent errors, which can quickly lead to employee concerns or regulatory issues.

We are gradually seeing workplace pensions become more transparent and more closely regulated.

This means that employers, over the coming months, will be expected to take a more active role in monitoring the quality of their schemes, while ensuring data accuracy and offering more effective employee support.

By acting early, however, businesses will be better placed to remain compliant and offer an improved pensions experience to their workforce.