Budget highlights
The UK Autumn 2024 and Spring 2025 Budgets introduced several changes that will impact pensions. Here is a summary of what was included.
Inheritance tax on pensions:
Starting from April 2027, pensions will be subject to inheritance tax. Under current proposals, this means that the value of unspent pension funds will be included when calculating the value of your estate and will be taxed at the standard inheritance tax rate of 40% on estates exceeding the £325,000 threshold. Legislation on this is yet to be finalised so there is potential for this to change. For further information about tax on inherited pensions go to www.gov.uk/tax-on-pension-death-benefits
Triple Lock maintained:
The Government has confirmed that the Triple Lock will continue, ensuring that the State Pension will rise each year by the highest of either price inflation (CPI), average earnings growth, or 2.5%.
State Pension increase:
From April 2025, the State Pension rose by 4.1%. This increase has brought the full State Pension up to £11,973 per annum.
Pension Schemes Bill
The Government announced on 5 June 2025 the Pension Schemes Bill in Parliament. This brings together a number of changes that are planned across UK pensions and are likely to lead to the biggest changes in the pensions landscape in a generation.
The main aims of the Bill are to:
- Combine smaller pension pots of £1,000 or less into one larger and more efficient pension scheme.
- Protect savers from being stuck in defined contribution (DC) schemes which are delivering poor returns.
- Simplify retirement choices, by having schemes offer a clear default option for savers to turn their pension into retirement income.
We expect these changes will start to be implemented in the next few years. We’ll keep you informed as this happens and how it’ll affect your Dow Services pension.
As always, the Trustee will continue to monitor any further announcements from the Government that may impact pensions.
Changes to State Pension age
The State Pension age is currently 66 years old for both men and women.
This will begin increasing from 6 May 2026 and will affect people born in or after April 1960.
We’ve provided a table below to help you see when you’ll be able to begin claiming your State Pension under current rules. Please note that the State Pension age will continue to be reviewed by the Government, which means that it could change again in the future.
To find out more about the State Pension please go to www.moneyhelper.org.uk/en/pensions-and-retirement/state-pension
| Date of birth |
Age you can typically claim your State Pension |
| 6 October 1954 to 5 April 1960 |
Your 66th Birthday |
| 6 April 1960 to 5 April 1977 |
Between age 66 and 67 - a set date depending on your date of birth |
| 6 April to 5 April 1978 |
Between age 67 and 68 - a set date depending on your date of birth |
| After 6 April 1978 |
Your 68th birthday |
Market volatility and your pension
There was a lot of market volatility earlier this year. This may have had a particular impact on you if you hold Money Purchase (MP) benefits, also known as defined contribution (DC) benefits.
The value of MP benefits fluctuates depending on the performance of the funds they’re invested in. While such fluctuations can be concerning, it’s important to remember that your pension plan is intended to be a long-term savings strategy, where short-term volatility is balanced out over the entire period you’re invested.
By visiting the online portal at portal.hartlinkonline.co.uk/mydowpension you can find out the value of your benefits, see which funds you’re invested in and submit a request to change where your benefits are invested.
For more information about managing your investments please visit the following www.mydowpension.co.uk/dow-services-section/managing-your-investments
If you’ve any questions regarding your pension, please contact the administrators using the details shown on the Contact us page. Alternatively, you can contact MoneyHelper for free impartial guidance about your pension. Visit the MoneyHelper website at www.moneyhelper.org.uk or call their pensions helpline on 0800 011 3797.