This week brought substantial updates in the pension industry, particularly on the topic of inheritance tax (IHT).

HMRC confirmed that it is reviewing the issues and views expressed in response to its consultation on plans to bring pensions into the scope of IHT and will publish both a formal response and draft legislation "later in the year".

This followed calls earlier this week from several industry organisations, including the Society of Pension Professionals (SPP), to rethink its plans to bring pensions into the scope of IHT.

HMRC also confirmed this week that while the top-up payments for individuals affected by the net-pay anomaly will still be made for the 2024/25 tax year, these payments are likely to be offered later than planned, in 2026.

Additionally, HMRC announced it will address pensions over-taxation issues as repayments reached nearly £1.4bn.

In other big news, the new Pensions Minister, Torsten Bell, confirmed that all automatic enrolment (AE) thresholds will be maintained at 2024/25 levels in 2025/26.

Adequacy was a common topic this week, with research from Raindrop finding that it had reunited customers with £251m in lost pension pots last year, representing a 61 per cent increase in 2023.

In addition to this, Hargreaves Lansdown’s Savings and Resilience Barometer has revealed that the average UK household is, on average, £31,546 short of the amount needed to maintain a moderate standard of living in retirement.

Meanwhile, Standard Life found that pension contributions were not considered among the top three financial priorities until individuals reach their 50s, specifically up to the age of 59, after which their importance begins to decline again.

Shepherds Friendly pointed out that the average amount retirees require per year for retirement in 2025 is £36,915, which is £25,413 higher than the annual state pension.

State pension was also mentioned this week in regards to the historic state pension changes, with the All-Party Parliamentary Group (APPG) for State Pension Inequality for Women urging the Work and Pensions Committee (WPC) to launch an inquiry into the government’s response to the Parliamentary and Health Service Ombudsman’s (PHSO) report on women's historic state pension changes.

Additionally, the financial and insurance sectors reported an average gender pay gap of 23 per cent, with over 85 per cent of employers having a gap exceeding 10 per cent, according to research from Isio.

This week also saw an update in defined benefit (DB) pension transfer values from XPS Group, with DB pension transfer values falling by almost 5 per cent during December 2024, dropping to their lowest level since its index began in 2018.

Support was also expressed for the government’s plans to reform the Local Government Pension Scheme (LGPS), with Better Society Capital (BSC) and the Impact Investing Institute suggesting the reforms offer a "compelling opportunity" for local investment.

This week also saw the Greater Manchester Pension Fund (GMPF) invest £100m into an affordable housing investment fund developed and managed by Legal and General (L&G).

In other news, the Royal National Institute of Blind People's (RNIB) Retirement Benefits Pension Scheme appointed Schroders Solutions as its fiduciary manager (FM), awarding them a £170m mandate.

Meanwhile, Reach PLC announced plans to provide an additional £5m in funding for the West Ferry Printers Pension Scheme after recent due diligence revealed a historical error.

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