Pensions news roundup – April 2026

16 April 2026

Written by Retirement Line

Pensions have certainly been in the news lately, with a series of reports shining a light on issues for retirement provision in the UK. From stark warnings about retirement income shortfalls, to concerns over tax thresholds, those near or at retirement continue to face a number of complexities and challenges.

There was a stark warning for Generation X (people born between 1965 and 1980) in the ‘Pension Shock’ report from the Social Market Foundation. Their report concluded that many of these are “too young to have benefited fully from generous defined benefit schemes, but too old to have built up significant savings through automatic enrolment, introduced in 2012”. 

The report said that 54% of Gen X are on track to a shortfall in their pension incomes in retirement, with 39% unlikely to maintain their current standard of living and 35% falling below the minimum retirement living standard. Perhaps worryingly, half of Gen X participants in the study expected more retirement income than they are on track to receive.

A varied picture for retirement income 

The Social Market Foundation study found something of a postcode lottery when it comes to Gen X pension provision. For example, 49% of those in the North East are projected to fall below minimum retirement living standards, compared with 26% in the South East. Retirement income is also likely to be lower for groups including women, renters, divorcees and people with long-term health conditions.

Similar inequalities across retirement income for different groups were reported recently by the Department for Work and Pensions (DWP). They say that the self-employed and people with care responsibilities are among those paying less into pensions than other groups.

Triple lock pushes people over the tax threshold

Another familiar topic in the news recently was the effect that the State Pension triple lock could have on pensioners’ income tax liability. Pension provider Aegon was among those warning that the 6 April rise of 4.8% in the State Pension could tip more pensioners over the tax threshold.

With the personal allowance limit at £12,570, the new State Pension annual level at £12,547 is just £23 below the threshold. It means that next year’s triple lock increase would see thousands of people liable for 20% income tax for income above the allowance.

Aegon say that despite the Chancellor’s pledge that anyone receiving the State Pension as their only source of income will not have to pay income tax, the reality is slightly less certain. Kate Smith, head of pensions at Aegon, said: “Those with very small private pension income and those working on a wage similar to the State Pension would still be expected to pay their tax bill.”

‘Certainty’ is a priority in retirement income

Finally, LV= have looked again at what is important to people when it comes to how they set up their retirement income. The insurance and pension provider’s latest study found that 56% of those aged 61-79 see certainty as the most important factor for their retirement income. That contrasts with those who are most interested in flexibility (29%) and growth of their pension savings (19%). 

Gwen Haggo of LV= said that retirees “shouldn’t have to choose” between these different outcomes and instead can benefit from tailored, blended strategies. As an example, some people may choose to buy an annuity with some of their pension savings to lock in guaranteed income, and a drawdown plan to give them some flexibility.