FASA 2025
Pensions and Protection Provider

Pensions and Protection Provider

Predictions surrounding the Autumn Budget 2025 have raised concerns about what the pensions landscape will look like if they come into effect.

According to Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, there are rumours that chancellor Rachel Reeves is going to reduce the amount of tax-free cash people can take from pension savings.

Morrissey said: “In 2024, many rushed to take tax-free cash based on speculation, but the wrong decision could leave you with a nasty tax charge.

“Recently released FCA data shows the amount of tax-free cash taken in the last tax year surged when compared to the previous one.”

There are also plans to make pensions part of peoples’ estates from April 2027, which is raising concerns for service providers and advisers alike.

Morrissey added: “Some people had planned to spend down other assets first and leave their pensions until last as it could be passed down to loved ones free of IHT — and if death occurs before the age of 75, free of income tax too.

“There’s a risk however, of a heftier tax bill on the estate, leaving less to pass on to family after death.”

As usual, providers and advisers will have to follow the HMRC guidance carefully to ensure clients stay protected, whatever the new rules bring to the industry.

It might have a knock-on effect to protection providers too, with clients not being able to use as much of their cash in their advice portfolios as they had done previously.

This may be concerning for protection providers, as FTAdviser reported in October this year that there had been a rise in people cancelling their private medical insurance policies.

However, despite rumours and uncertainty in the industry, pensions and protection providers bounced back in 2025m with 10 providers garnering five-stars at this year’s Financial Adviser Service Awards, compared with just six in 2024.

Royal London Pensions, Royal London Protection and Vitality Life all jumped to five stars this year from four in 2024. True Potential, InvestAcc, Quilter, Guardian and Just all remained consistent high-flyers, staying in this category again in 2025.

Four-star winners bounced back too, with 12 winners in the category this year, compared with eight in 2024.

The Exeter, Paymentshield, Fidelity Adviser Solutions and Metlife UK all stayed in the four-star category again this year, alongside eight other winners, including Shepherds Friendly, Legal & General and LV rising from three-stars in 2024 to four-stars in 2025.

Tom Evans, managing director, retail at Just, said their company provides “positive disruption in the market”.

Evans said: “Just Group has a clear and compelling purpose — we help people achieve a better later life. We constantly strive to understand and fulfil the needs of advisers and their clients through innovation.

“Our close relationships with advisers and extensive experience and research enables us to find solutions that that make a tangible difference to clients’ lives. By helping advisers support their clients we are fulfilling that core purpose.”