Pensions Bulletin 2025/36
This content is AI generated, click here to find out more about Transpose™.
For terms of use click here.
This edition: Latest Regulator analysis shows improvement in overall scheme funding once more, Dashboards to show very limited state pension information, “Pay your pension some attention” goes to the gym, A late Budget this year – will pensions come under the spotlight again, and Pensions Minister survives ministerial reshuffle
Latest Regulator analysis shows improvement in overall scheme funding once more
The Pensions Regulator has published its 2025 analysis of funding statistics for UK defined benefit and hybrid pension schemes. This analysis relates to schemes that carried out valuations with effective dates between 22 September 2022 and 21 September 2023. Known as tranche 18 schemes, none of these valuations were subject to the new funding and investment strategy requirements which only apply to valuations with an effective date on or after 22 September 2024.
The key findings of the analysis, which covers 1,640 valuations, are that these schemes were 104% funded on average, on a technical provisions basis (up from 89% three years prior), with 62% of schemes reporting a surplus position (up from 27% three years prior). The average recovery plan length for schemes in deficit was 4.4 years (down from 6.3 years three years prior).
Further detail and other findings are set out in an annex.
Comment
Once more a significant improvement in funding levels, and a casual look at the dataset in the Annex shows that the improvement was particularly marked this time round. However, overall, these tranche 18 schemes, like all tranches before them, remain in a buyout deficit, although presumably quite a few individual schemes are in surplus on this measure.
Dashboards to show very limited state pension information
A blog, published by the Pensions Dashboards Programme shows how little information about an individual’s prospective state pension entitlement will be directly viewable on the MoneyHelper pensions dashboard when it goes live. Arranged in FAQ style, the answer to most questions about state pension entitlements is “No”.
Only those below state pension age will be able to see their prospective state pension entitlement through dashboards and for them only two figures will be available – an estimate at state pension age based on the individual’s current NI record, and a forecast, assuming they continue to pay NI contributions through to their state pension age. These figures, which are expected to be updated annually, would appear to be the same as are currently available through existing Government online tools.
The state pension information displayed on dashboards will include signposts to other Government tools, including those setting out the individual’s NI record over the years, which may reveal some gaps, and those containing projections of how voluntary contributions would increase a state pension.
The blog confirms that there are no plans for pensions dashboards to replace the Government’s "Check your State Pension forecast” service.
Comment
Although the dashboards are to show less state pension information than can currently be obtained through GOV.UK, if dashboards are a success, it is likely that far more people will become aware of what state pension they may become entitled to and when than is currently the case. And if the dashboard’s existence encourages individuals to check their NIC record and see what they can do to improve their state pension, so much the better.
“Pay your pension some attention” goes to the gym
Around this time of year, as the evenings start to draw in, PensionsUK, along with the Association of British Insurers remind us to pay some attention to our pension savings.
This year’s campaign is fronted by Ross Kemp and Bola Sol with a gym-workout based theme of strengthening our pension. It sees Ross Kemp star in a fitness advert, calling on all of us to ‘gain pounds’ for the future, as various statistics reveal that improving physical health is more popular than organising finances for future life.
We are asked to ‘stretch’ our minds back to any past employers or pensions and to find any lost pensions. We are then asked to ‘check our form’ by logging into our pension accounts to see how much is saved there, and to ‘work out’ how much we might need for the future. Handy links to useful resources are included alongside each step.
Comment
This is a welcome campaign blending physical with financial fitness. We hope that it will encourage people to check in on their pension wealth, and where necessary and financially possible, to take some action to improve it.
A late Budget this year – will pensions come under the spotlight again?
Last week the Chancellor of the Exchequer confirmed that the date of this year’s Budget will be 26 November 2025. Following on from this HM Treasury launched the Budget representation portal where comments can be submitted on existing policy and suggestions made on new policy ideas for consideration in the Budget. The portal will close just before midnight on 15 October 2025 and representations made will be processed and considered as part of the Budget process.
Two days after the announcement LCP published a report analysing the risks of changing pension tax relief in this November’s Budget, highlighting that all three possible changes covered in the report have serious political or practical issues.
Comment
Once more, there is speculation that the Chancellor will be looking at aspects of the pensions tax regime to see whether she can raise much-needed funds from this source on top of the announcement last year that unused pension pots would be drawn within the inheritance tax net from April 2027. We must all hope that, despite the speculation, the Chancellor will not be “paying any attention” to our pensions.
Pensions Minister survives ministerial reshuffle
Torsten Bell remains the Pensions Minister in the reshuffle that followed last week in the wake of Angela Rayner’s resignation from the Government. However, his boss at the Department for Work and Pensions, Liz Kendall, was replaced by Pat McFadden.
Sign up to receive our weekly bulletin
Subscribe to LCP emailsThis Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.
If you would like to receive the weekly pensions bulletin automatically by email please fill in this form.
