City AM Pension Special Report

Welcome to City AM’s comprehensive 2026 Pension Special Supplement.

With total pension assets of $3.2 trillion, the UK has the world’s fourth-largest retirement market. However, the landscape is swiftly evolving as defined benefit schemes give way to defined contribution structures and self-directed Self-Invested Personal Pensions (SIPPs).

What’s more, recent changes to the tax and regulatory environment are forcing savers and investors to fundamentally rethink their approach to pensions.

The two biggest changes that will directly affect savers are drawing unused pension funds into the inheritance tax net from April 2027 and capping National Insurance relief on salary sacrifice at £2,000 a year from April 2029. Both are designed to take more tax from high earners and have been criticised for their impact on established savings plans.

At the same time, the government is trying to drive more money from pension funds into the wider UK economy, either through mandates or non-binding commitments.

Together, these changes mean the UK pensions landscape is facing some of the largest changes in recent memory.

Still, savers shouldn’t let the changes interrupt their retirement plans.

This guide breaks down the essential rules governing tax relief, from the automatic 20 per cent top-up on personal contributions to additional relief for higher-rate taxpayers. It outlines how to maximise the £60,000 annual allowance, manage the tapered allowance for high earners, and use carry-forward rules to avoid heavy tax charges.

The supplement also covers the advantages of saving early and the power of compound interest, whether via a Junior SIPP or consistent investing in adulthood.

It also considers asset allocation and managing risk vs reward, with growth-focused equities to assets designed to preserve capital.

Choosing the right investment vehicles and platform can make a difference worth tens of thousands of pounds over a career.

Savers now have unprecedented access to low-cost passive ETFs, active investment trusts, and high-growth themes like AI, renewable energy, and emerging markets as Vietnam and India.

To help you minimise drag on your returns, the feature concludes with a comprehensive fee comparison across execution-only platforms, traditional full-service brokers, and automated robo-advisors.

Whether you want to consolidate legacy workplace pots, optimise tax strategy, or lower platform costs, this special report equips you to take control of your financial future.