Pension Rules Are Changing: What You Need to Know

Most people only look at pensions when they’re close to using them. That’s a problem, because the rules are shifting underfoot.

A few years here, a tax tweak there, and suddenly the plan you thought was watertight springs a leak.

Here are three of the major changes on the horizon:

• The two-year delay – From 2028 you’ll need to be 57 before dipping into a pension without penalty. Miss the cut-off by a few months and you wait two extra years.

• Inheritance tax bites (maybe) – From 2027, pensions are slated to count towards your estate for IHT. That would overturn one of the most efficient ways to pass wealth down. The policy was announced in the 2024 Autumn Budget, with a technical consultation running until January 2025. After feedback from trustees, lawyers and advisers, draft legislation was published in July 2025. It still needs to clear Parliament before becoming law, so while the direction is set, the fine print may yet shift.

• State pension drift – The state pension age edges up to 67 by 2028, with 68 already in the pipeline. That’s a longer gap to bridge before the government pays out.

None of this is small print—it’s about when you can stop working, what you’ll live on, and what you leave behind.

At Arcturus Wealth Management, we help clients stress-test plans against these shifts, so the future isn’t left to chance.