Pensions are something to be proud of, as many of those working in the industry, I'm sure, are quick to tell their friends and family when the usual 'boring' accusations are being hurled around.

But for many, far worse than being boring, pensions are something much scarier than any Halloween ghost story.

Indeed, research from Standard Life found that one in ten (10 per cent) feel too overwhelmed to even look at their pension, and more than a fifth (26 per cent) have no idea how much they’ve saved so far.

This is perhaps unsurprising given the growing sense of precariousness amongst savers, as Standard Life found that 83 per cent of people think things feel more uncertain than they did a few years ago.

Standard Life retirement savings director, Mike Ambery, admitted that "it might feel frightening to face your pension", but warned that "the real horror is ignoring it".

But savers are not the only ones who often choose to shy away from those things that scare them, and it feels only right to use the excuse of Halloween to explore the ghost stories haunting the UK pensions industry.

From lost pots to lurking liabilities, there’s no shortage of things to keep pension professionals awake at night.

Just this week, we saw how the shadow of past structures continues to plague today's retirees, as HMRC's latest update revealed that repayments for overpaid tax on flexible pension withdrawals had passed £1.5bn, with many blaming this on the fact that the PAYE system was built for regular employment income, not one-off pension withdrawal.

But this is not the only unintended consequence or historical issue that continues to lurk around the corner waiting to catch savers out.

The ghosts of pensions past

Previous decades of reform have left a trail of lessons behind them, from the mis-selling scandals of the 1980s to dashboard delivery delays and rushed inheritance tax legislation. The industry knows far too well that even well-intended changes can summon unintended consequences.

But amid the fears, there are also opportunities, the potential 'treats' that can help turn pension 'tricks' into future security.

With the Pension Schemes Bill on the horizon, now seems a good time to take these lessons to heart, as past mistakes of rushed legislation are at risk of being repeated, with some suggesting that the Pension Schemes Bill appears to be an "incomplete package".

Whilst the government's roadmap provided some certainty, hundreds of pages of amendments following this make it hard to keep track of crucial details, many of which it seems won't be confirmed until later consultations or secondary legislation is shared.

Treat, not trick: As new legislation emerges, policymakers and industry leaders must focus on simplicity, phased implementation, and clear member communication.

Lost pot phantoms

Despite years (if not decades) of debate and discussion around the best way to address this issue, thousands of workers are haunted by forgotten pension pots from past jobs.

Previous analysis from the Pensions Policy Institute (PPI) found that the value of lost pots rose by 60 per cent, or £12bn, since 2018, with around £31.1bn lying in unclaimed, inactive, or lost pension pots.

But work is finally underway. Pensions UK's Small Pots Feasibility Review suggested that a solution is finally "within reach", arguing that a united, industry-delivered model offers a feasible and cost-effective solution for implementing the Small Pots Data Platform by 2030.

Pensions dashboards could bring a solution even sooner, as we are now just under a year away from the final connection date. And real users are already interacting with dashboards as part of the MoneyHelper dashboards' low-volume testing.

Treat, not trick: Let's not leave savers waiting even longer for long-awaited solutions to this issue. The long-awaited Pensions Dashboard, expected to go live in the coming years, should finally help reunite savers with their lost pots — a welcome exorcism for this particular ghost.

Taking lessons from the pensions dashboards project forward into the work of the Small Pots Data Platform could also prove invaluable, even if it's not as easy as simply "dragging and dropping" the dashboards approach.

In the meantime, employers and advisers can also play a vital role by reminding staff to keep their contact details updated.

The inflation curse

The sharp rise in inflation over the past two years has been one of the biggest horrors for many. And for retirees on fixed incomes, it’s felt like a slow-acting spell draining purchasing power.

This issue has been hurled back into the spotlight amid the recent Work and Pensions Committee's session on discretionary increases, where campaign groups warned that the 50:50 defined benefit (DB) surplus sharing envisioned by the government could fast turn into a nightmare if the bill is not strengthened.

Rising inflation also continues to raise problems for the state pension, as whilst the triple lock will ensure that retirees have an above-inflation increase this year, the rising cost this presents for the government is gathering growing scrutiny, particularly ahead of the Budget.

Treat, not trick: Trustees and employers can help members understand the importance of inflation-linked benefits where available, as well as explaining the difference between discretionary and mandatory increases, to prevent claims of scams or trickery. This could also bolster broader engagement efforts to ensure savers properly understand what they can expect in retirement.

But more importantly, lessons from the issues faced today should be taken forward into both the adequacy debate being had amid the work of the Pensions Commission, as well as the work to review the state pension age.

The long-tail of pension transfers

Work to address scam pension transfers was hailed as a huge success when introduced, as trustees were finally given the power to protect members who they could see were walking into a pension trap.

But the rules designed to protect members from fraud have since created growing tension in the industry, as many battle with the correct balance between security and speed.

Some legitimate transfers have been halted due to technical red flags, such as overseas investments or certain incentive structures, even when no scam risk truly existed.

Treat, not trick: Whilst the government has repeatedly said that the proposed review of the transfer regulations will still be taken forward, progress is needed sooner rather than later to help stop in-fighting and allow providers to focus on what really matters: member outcomes.

In the meantime, clear communication with members and advisers is vital to avoid misunderstanding and maintain confidence in the system.

There are many more ghosts from the past that the industry would do well to remember when navigating the changes that lie ahead, but only so many Halloween-themed sub-headings I can think of, so I'll leave it there.

But for now, the industry has a choice: be haunted by the same old challenges, or use reform and technology to turn them into treats.

By shining a light on past mistakes, the UK pensions sector can banish its ghosts — and give savers a retirement that’s more treat than trick.

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