Law360: A large portion of the highest level of funding surpluses recorded by pension plans in 2023 was caused by a decline in life expectancy in Britain, a consultancy said on 3 June 2024, as the sector continues to wrestle with the uncertain impact of the coronavirus (COVID-19) pandemic.

Law360: Pension funding in the UK reached a record surplus of £265bn in January 2024 despite the economic turbulence towards the tail end of last year, according to an analysis by PwC.

Law360: The funding surplus of pension plans fell by £500m, according to official figures, after the Bank of England (BoE) cut interest rates in August 2024.

Law360: The pensions sector could face further market volatility in the second half of 2025 because of renewed trade tariffs or geopolitical conflicts, Broadstone warned on 4 July 2025.

Law360: Political uncertainty and limited investment opportunities are among the biggest challenges holding back pension schemes from sticking to net-zero emissions policies, the Pensions and Lifetime Savings Association (PLSA) warned on 4 December 2024.

Law360: The Work and Pensions Committee (Committee) is set to quiz pensions chiefs on 14 May 2025 as part of a wider probe into whether the £3trn retirement savings sector can invest more in UK assets to better support the country's economic growth.

Law360: Pension schemes are not investing enough in Britain, a Treasury minister has warned, adding that the government will consider what 'further action' is necessary to stimulate the capital injection that parliament want for the economy.

Incorporated into an annuity, a guarantee ensures that pension instalments for a specified period are paid, even if the member dies before the period expires.

The income you get from your pension savings by buying an annuity or unsecured pension. Pension income is taxable.

Increase to a pension or annuity that is already in payment, either as a result of indexation or the exercise of a discretion.

Statutory minimum increase rates The table below summarises the current statutory minimum increase that occupational pension schemes must apply annually to each tranche of pension. Period of pensionable service to which pension is attributable (or, in the case of money purchase benefits, period in which contributions were made) Statutory minimum pension increase Source Before 6 April 1997 None, save that in order to refund surplus assets to a sponsoring employer under the Social Security Pensions Act 1975, s 58A, it used to be necessary (up until 5 April 2006) to revalue all pensions in payment (excluding GMPs and money purchase benefits) annually in line with RPI subject to a cap of 5% Despite the absence of a statutory minimum increase, most defined benefit schemes pay some pre-1997 indexation because of scheme rules or as a discretionary benefit. As at March 2023, research suggests that only 17% of members of private sector defined benefit pension schemes do not receive any pre-1997 indexation on benefits Calls have been made on the government to legislate to mandate inflation-linked increases

The annual increase in an individual's pension provision (which should not exceed the annual allowance), calculated over the pension input period. While although the annual allowance applies on a tax year basis, the PIA is a measure which is not specified as having to be calculated over the tax year – it can cover a different period and is defined by the trustees of a plan.