Preparing your pension for the 2025 Autumn Budget

id

With the Autumn Budget set for 26 November 2025, there’s already plenty of chatter about what might change - especially when it comes to pensions. But before you start making any big decisions, let’s look at what you really need to do right now.

What are some of the rumoured changes?

There’s speculation that the government may:

• Change salary sacrifice rules, which could affect how tax-efficient your pension contributions are
• Change the amount you can take as a tax-free lump sum from your pension savings
• Make more changes to inheritance tax rules 

But here’s the key thing: none of these changes are confirmed - and even if they are announced, they’ll take time to come into effect. As an example, changes were announced in the 2024 Autumn Budget that could make unused pension savings subject to inheritance tax - but those changes won’t apply until 2027, and how this will actually work in practice is still being decided.

So, what should you do now?

Rather than reacting to rumours, it may be better to wait until any changes are confirmed before taking any action.

However, this could be a good time to take stock of your pension situation. That way, if pension changes are announced, you’ll have a better understanding of how they might impact you and your plans. Here are four simple steps you can take now to help you feel more in control:

1. Review your retirement timeline

If you’re still to retire, have a think about when the right time for you might be. How many years do you have until retirement? Are you planning to retire gradually or all at once?

Knowing your timeline can help you make better decisions about your pension contributions and when to access your pension savings. If you’re not sure, try reading When is the right time to retire?  

2. Think about how you’ll take your money

Getting to know more about what your options are for taking your pension money, and which one(s) you might like to choose, can help you understand how any changes could affect your plans.

You can find out more about your options in How can you take money from a pension plan?

3. Consider what happens after you’re gone

It’s a good idea to think about what your plans are for your pension plan after you die. Do you want to pass your pension savings on to loved ones? If you do, have you got a good understanding of how they could be taxed? 

Getting to grips with how you plan to pass on your pension savings, and what’s important to you, may help you make important decisions later if pension changes are announced.

4. Check your contributions

Previous Budgets have seen changes to the amount you can put into your pension each year while still getting tax benefits on your contributions. Currently, your pension annual allowance is £60,000 (or £10,000 if you’ve already started taking taxable money from your plan). It’s worth checking how much you’re paying in each year, and how close to this limit you are.

It could also be a good idea to look at not only how much you currently pay into your plan each year, but also how you do it. Any changes to how tax benefits on your contributions is paid could in turn mean changes to how you pay into your plan. Some people will pay directly into a plan, while others might have their contribution taken off their salary and paid into their pension before they pay any tax or National Insurance on it (known as salary sacrifice). 

Stay calm and stay informed

It’s tempting to act quickly when you hear about possible changes, but acting on speculation could lead to unnecessary stress or poor decisions. Instead, focus on what you can control now and consider waiting for the official announcements in November.

Of course, we’ll keep you up to date with any Budget changes that will impact your pension savings. 

id

The information here is based on our understanding in October 2025 and shouldn’t be taken as financial advice.

A pension plan is an investment. The value of investments can go down as well as up and could be worth less than was paid in.

Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.

Standard Life accepts no responsibility for information in external websites. These are provided for general information