The 3 major pension reforms taking effect in 2026 – everything you need to know | Personal Finance | Finance

Millions of people saving for retirement will see big changes this year as three major pension reforms come into force. The changes affect how workers access information about their savings, the type of support they can receive, and how small pension pots will be handled in future.

The reforms are due to roll out in different stages across 2026, with each one aimed at making the pensions system easier to navigate. The measures focus on helping people understand what they have saved, giving clearer guidance when making decisions, and improving the way workplace pensions operate.

Pension dashboards will be the first major development, with schemes expected to begin connecting this year. 

All pension providers must be linked to the dashboard system by October 31, although the exact timetable will differ depending on scheme size and type. 

The dashboards are designed to show savers all of their pensions in one secure online place.

Jonathan Watts-Lay, director at WEALTH at work, told Sky News that the dashboards will allow savers to view all their pots together, helping them make more informed choices about their financial future.

A second reform is the introduction of the Targeted Support regime. The Financial Conduct Authority is preparing to launch this in April 2026. 

The new framework is meant to sit between general guidance and fully regulated financial advice, giving people more personalised support without the cost of traditional advice.

Under the system, authorised firms such as banks, building societies, pension providers and employers running workplace schemes will be allowed to offer tailored suggestions to groups of savers who share similar financial characteristics. 

The aim is to make pension help more accessible to people who may not seek out full advice. The exact timetable is still dependent on parliamentary approval.

The third reform centres on the Pension Schemes Bill, which is expected to become law by mid-2026. 

The legislation is designed to address two long-running issues: underperforming schemes and the growing number of small pension pots created through auto-enrolment. 

There are currently around 13 million deferred pots worth under £1,000, and that number is rising by roughly one million a year.

A Small Pots Delivery Group is developing a system that will allow eligible pots to be transferred to authorised consolidators. 

This part of the reforms is not expected to take effect until around 2030, but the groundwork begins with the upcoming bill.

The legislation also introduces “guided retirement”, which will require defined contribution schemes to offer default retirement solutions that convert pension savings into income.