New tax year 2026/27: A pension checklist for advisers

The start of a new tax year is often treated as a procedural reset – a time for refreshed allowances, updated figures and revised documentation. But for advisers, it represents something far more valuable: a natural opportunity to re-engage clients, reframe conversations and ensure pension strategies remain aligned with an evolving financial landscape. At iPensions Group, we see the beginning of the 2026/27 tax year as a strategic moment, not simply an administrative one. Used effectively, it can set the direction for the year ahead.

The Annual Allowance remains at £60,000 (subject to tapering and capped at 100% of relevant earnings). In reality, relatively few clients are in a position to fully utilise this limit, yet underutilisation is still common, particularly among business owners, higher earners with fluctuating income, and those who haven’t revisited their pension strategy in recent years. Carry forward rules provide valuable flexibility, but too often they are only considered late in the tax year, when decisions become rushed. Early engagement allows for a more deliberate, tax-efficient approach and helps clients maximise what is realistically achievable.

Pension fragmentation and the role of dashboards

Auto-enrolment has successfully increased participation, but it has also led to a growing number of small, disconnected pension pots.

Fragmentation can reduce engagement and make it harder for clients to understand their overall position. While consolidation is not always appropriate, reviewing existing arrangements can improve clarity and, in many cases, enhance the overall client experience.

The introduction of pension dashboards is expected to play a significant role here, helping clients and advisers build a more complete picture of an individual’s pension landscape and supporting more informed decision-making.

Planning ahead for inheritance tax changes

Looking slightly further ahead, proposed changes to the inheritance tax (IHT) treatment of pension assets from April 2027 are likely to influence planning decisions.

Pensions have historically been viewed as an efficient estate planning tool, but any shift in their IHT position may require advisers to reassess how they are used within broader wealth strategies. Early awareness and forward planning will be key.

Reaching underserved groups

The new tax year is also a timely point to focus on clients who may be underserved by traditional pension structures.

The gender pensions gap remains a significant issue, driven by career breaks, part-time work and lower average earnings. Meanwhile, many self-employed individuals remain outside automatic enrolment altogether.

Proactively engaging these groups is not only the right thing to do, but also an opportunity for advisers to differentiate themselves through more inclusive, forward-thinking strategies.

Reassessing retirement expectations

Economic conditions have shifted considerably in recent years. Inflation, cost-of-living pressures and changing lifestyle expectations are all influencing retirement planning.

Clients who set plans several years ago may now be working from outdated assumptions. The start of a new tax year provides a natural moment to revisit these conversations and ensure plans remain realistic and achievable.

Setting direction, not just ticking boxes

The real value of the new tax year lies in setting direction, not simply completing administrative tasks. Advisers who engage early, take a holistic view and challenge existing assumptions are far more likely to deliver meaningful outcomes.

We believe better pension outcomes start with better engagement. The key question isn’t just whether clients are on track, but whether they are actively involved in the journey ahead.

Disclaimer

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought (as well as legal advice where required) in both the UK and any jurisdiction where you are resident.

iPensions Group Limited is authorised and regulated by the Financial Conduct Authority, Licence Number 464521.