Despite the usual summer slowdown with holidays in full swing, this week still delivered several noteworthy updates for the pensions industry.

HMRC released figures showing that the estimated cost of gross pension income tax and National Insurance contributions relief increased to £78.2bn in 2023/24, compared to £72.1bn the year before.

This increase has reignited speculation around possible pension tax changes in the upcoming Autumn Budget, although industry experts have warned that major reforms, such as introducing a flat rate of tax relief, could prove politically and practically difficult to deliver.

HMRC also published data on overpaid tax for individuals who flexibly accessed their pensions in the second quarter of 2025. The data showed that more than £48m was repaid between April and June, with the average tax refund per saver around £3,814.

Reflecting the wider pressures on the pensions system, The Pensions Ombudsman also outlined plans this week to tackle the rising and "unprecedented" demand for its services in its new Corporate Strategy for 2025-2028.

The strategy includes exploring new and innovative ways to address the growing funding gap it faces, highlighting the challenges felt across the sector, from policy reform through to service delivery.

While tax relief and service pressures featured heavily in discussions this week, attention also turned to participation and adequacy following data from the Department for Work and Pensions (DWP).

The DWP reported that 89 per cent of eligible employees in Great Britain were saving into a workplace pension in 2024, a strong headline, but one that hides the persistent gaps across different groups.

And industry experts were quick to warn that participation alone isn't enough, with one industry expert pointing out that “saving something isn’t the same as saving enough”.

Adequacy concerns weren’t confined to the UK this week either, with research from the Thinking Ahead Institute revealing that over half of global defined contribution (DC) pension organisations remain worried that members aren’t saving enough for retirement.

Festina Finance also contributed to the conversation, arguing that UK policymakers should reconsider the definition of pension adequacy and draw inspiration from international systems to improve retirement outcomes. The company believes that pension adequacy in the UK requires a “structural reset”.

This week also saw two separate analyses of DWP statistics that shed light on different aspects of retirement planning.

One highlighted a significant lack of awareness around the state pension deferral option, suggesting many savers could be missing out on potential benefits.

Meanwhile, a second analysis revealed that most people approaching or already in retirement still prefer to secure a guaranteed income from their DC pensions, underscoring ongoing demand for stability in retirement income.

Dashboards progress also continued this week, with Nest and Smart Pension joining the ecosystem, and the XPS Group confirming that it has connected over 600,000 members to it.

LCP also urged pension scheme trustees to begin preparations now, outlining practical steps as the sector moves closer to full integration.

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