A] Prelude
For more information on pension systems, risk and coverage, feel free to visit our dedicated webpages:
https://expatpensionholland.nl/uk-expat-pensions
https://expatpensionholland.nl/global-pillars-systems
https://expatpensionholland.nl/global-investments-risks-0
https://expatpensionholland.nl/global-social-security-coverage
For even more information feel free to visit the following external sites:
https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027
https://www.mayerbrown.com/en/insights/publications/2025/11/united-kingdom-pensions-2025-highlights-and-2026-outlook
B] The Issue
With the festive break upon us, it’s time to find out what the pensions industry really wants for Christmas this year. Pensions Expert asked representatives of 21 organisations from across the UK retirement industry to come up with one ‘Christmas wish’. From a smooth passage for the Pension Schemes Bill to collective defined contribution (CDC) schemes becoming a reality, from defined benefit (DB) endgames to the Pensions Commission, it’s fair to say that our list to Santa is a long one.
C] DB surplus and endgame options
Alison Fleming at PwC: “It is difficult to choose just one thing! We are looking forward to seeing more details of how the promised surplus extraction regime for defined benefit schemes will work. This has the potential to benefit members and corporate sponsors in making available surpluses that have grown to record levels in many cases.”
Alastair Greenlees at Van Lanschot Kempen: “Whisper it, but we are already seeing a key wish list item: the growth of alternative endgames. When schemes buy out with an insurer, the announcement is usually high-profile, though when schemes choose to run on for members and sponsor, it is usually quieter – the recent Stagecoach announcement is a rare exception. If there was more noise across the industry when schemes choose to run on, it might bring a little more festive cheer and confidence to those making decisions.”
Stephen Richards at Stephenson Harwood: “We would like to see the return of surplus question being addressed in its proper legal context, which is neither starting from the point of bargaining for further benefits for members nor an insistence on buyout at all costs. Rather, we would like to see the industry focus first on what is the correct thing to do, which is to ensure existing pension benefits are paid. That could be buyout, run-on or something else. And we are excited by some of the innovative options out there.”
D] The Pensions Commission and adequacy
Maggie Rodger of the Association of Member-Nominated Trustees: “That the Pensions Commission and other discussions and developments lead pensions scheme members to better understand the value of pensions. And for each £1 contributed to produce the best long-term return for members to improve pensions adequacy generally.”
Tess Page at Mercer: “The industry will be watching activity from the Pensions Commission closely. We’d like to see recommendations which improve member outcomes, address adequacy gaps and inequalities, and build a system which is fair for all, and crucially for them to be implemented as quickly as possible.”
Jayesh Patel at L&G: “On the top of L&G’s Christmas wishlist for the pensions industry is real progress towards pension adequacy for members. The Pensions Commission’s first report, expected in the spring, will be an important opportunity to map the problems that result in inadequate pensions.
E] The Pension Schemes Bill
David Saunders at Sackers: “Like a Christmas tree swathed in an excess of tinsel and lights, over the years, pensions have become wrapped up in numerous layers of intertwined legislation and regulation, which can make it difficult to see clearly where one obligation begins and another ends.
With the Pension Schemes Bill poised to deliver sweeping changes from now until 2030, top of my wishlist would be that the government and regulators aim to keep the flow of changes steady and avoid as far as possible over-egging the pudding.”
A spokesperson for the Pension Protection Fund (PPF) said: “Top of the PPF’s Christmas wishlist is a smooth passage for the Pension Schemes Bill into royal assent so that we can deliver the reforms in it that will help us better protect our members and lift unnecessary costs for levy payers.”
F] Some festive respite
Sophia Singleton of Pension Professionals: “The industry has a huge volume of change to contend with in the coming years – scale, value for money, dashboards, guided retirement, targeted support, pot consolidation, restrictions to salary sacrifice, the introduction of inheritance tax on unused pension pots and more, much more. Our Christmas wish would be to ensure these changes are implemented effectively with nothing more on top of what’s already planned in the short to medium term.”
Sonya Fraser at Arc Pensions Law: “A genuine cross-party commitment to stop tinkering with the pensions tax regime. Constant fiscal adjustments have eroded public trust and made saving into a pension scheme feel uncertain and opaque.
“If we are serious about addressing issues around retirement adequacy, then savers need to have confidence that the rules won’t change every Budget and that the goalposts will actually stay put. We need stability and a system that people can rely on for 30-plus years, not just for the next fiscal cycle. A cross-party pledge of pensions tax consistency would be a very welcome Christmas gift, acknowledging we are probably more likely to see pigs fly!”
G] Climate change and sustainability
The Universities Superannuation Scheme (USS) recently published a report with Transition Risk Exeter calling for stronger action from governments, improved management of climate risks and opportunities from asset owners, and a more collaborative approach to managing these challenges.
Simon Pilcher of USS Investment Management: “Reducing portfolio emissions alone will not solve the problem. Real-world emissions continue to rise while those of our own portfolio are falling. Asset owners must collaborate and engage with policymakers to accelerate real-world change. If the real world doesn’t transition, the long-term returns we need to pay pensions could be impacted.”
Naomi Clark at USS Investment Management: “Much more needs to be done, and quickly, to slow down or reverse the rise in global temperatures. We all have a part to play – pension funds, investors, policymakers and regulators alike. With the right policies and investor action, the energy transition could deliver trillions in savings and create a more resilient economy. Strong government policy is essential to unlock the full potential of clean technologies.”
H] Collaboration
Rachel Elwell at Border to Coast Pensions Partnership: “We know we are stronger when we work together, and indeed, collaboration is part of the DNA of the Local Government Pension Scheme (LGPS). I’d like to see that spirit of collaboration in action across the entire investment ecosystem.