The good news is that there are no immediate changes impacting your pension savings and how you save.

• Tax-free Cash Lump Sum (or Pension Commencement Lump Sum). Whilst there were rumours that there could be changes, the good news for those nearing retirement is that there was no change to payment of the tax-free cash lump sum at retirement, meaning that you can still take up to 25% of your pension savings tax-free¹.

There will be some changes in the coming years –read on to see what they are.

• If you contribute using salary sacrifice.  Currently, there’s no limit on the amount you can salary-sacrifice into your pension without paying National Insurance (NI). From April 2029, NI savings on pension contributions made via salary sacrifice will be capped at £2,000 per year. There’s nothing for you to do now. However, some members might want to maximise their pension savings before the cap comes into effect. We’ll provide some additional guidance as we prepare for these changes in the coming years.
• You can find more about salary sacrifice in your Trust documents, found in the documents section of your online Pension Account. You can also find out more about what to consider regarding your pension and tax here
• State Pension increase. It is set to rise by 4.8% from April 2026. This is good news for those receiving the State Pension!

Rest assured that we’ll endeavour to keep you up to date with what’s going on and give you the information you need to help you make the most of saving for the future.

If you have any immediate questions, please contact the SEI Master Trust Administrator, XPS, here. If you are unsure what this might mean for you and need financial advice, details of how you can find an authorised financial adviser can be found here.

¹ Subject to the Lump Sum Allowance (LSA) of £268,275 (2025/26).