Again, it was wonderful to meet some of you at our July Pensions & Prosecco events.

Since then, we've had a new Prime Minister - so what does that mean for your pension?

Right now, not much that we know of.

But with a Budget coming on 28 October, expect plenty of speculation over the next couple of months about what could change for pensions, tax and your money more broadly.

For now? Try not to get too distracted by the noise. We'll be watching what actually gets announced and will take you through the pension need-to-knows in our next newsletter.

In the meantime, here are a couple of pension things worth having on your radar.

Katie

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At the moment, money left in pensions sits outside your estate when inheritance tax is calculated. But from 6 April 2027, most unused pension funds will be included.

This won't affect most people. But the Government estimates around 10,500 estates that wouldn't otherwise have paid inheritance tax will have a bill, while another 38,500 will pay more. For those paying more, the average increase is around £34,000.

What this means for you:
Most estates still aren't expected to pay inheritance tax.

But if you've deliberately been leaving your pension untouched because you planned to pass it on to your family, this change is worth paying attention to. Your remaining pension could soon count towards the value of your estate - potentially pushing it above the inheritance tax allowances available to you.

And your relationship status matters. Married couples and civil partners have inheritance tax advantages that unmarried couples don't - it's why comedian Ricky Gervais recently said in an interview that, after 44 years with his partner Jane Fallon, tax might finally be the reason they get married.

I've worked through what the pension change could actually mean in pounds and pence in the reel below.

Worth doing
Don't make changes to your pension based on news headlines alone. But if you think the new rules could affect you - particularly if preserving your pension has been part of your inheritance planning - it's worth reviewing your plans and considering whether you need financial advice before April 2027.

And don't only think about your own pension. If you have a partner, do you both know what would happen financially if one of you died? And if your parents are approaching or in retirement, do you have any idea what their plans are - and whether these changes could leave the family with an unexpected inheritance tax bill?

I know, it’s not exactly a fun family dinner conversation - but potentially a very valuable one.

Salary sacrifice lets you swap part of your salary for a pension contribution, with both you and your employer paying less National Insurance.

From April 2029, the Government plans to reduce those National Insurance savings, prompting headlines that give the impression that salary sacrifice could become much less worthwhile - you may have seen one last week about a £468 million "salary sacrifice raid" on employees.

In reality:
I looked at someone earning £60,000 who puts £10,000 into their pension through salary sacrifice, with another £3,000 from their employer.

Under the proposed rules, £13,000 still ends up in their pension. The difference? Around £176 less take-home pay a year compared with today's rules. Their employer would also pay roughly £1,200 more in National Insurance.

Why it matters:
The changes aren't due until April 2029 and the details could still change.

The bigger concern is behavioural. Experts worry because incentives do matter and if salary sacrifice becomes less generous, some people may respond by cutting their pension contributions to protect their take-home pay.

For now, though, salary sacrifice remains one of the most tax-efficient ways to save into a pension.

53% of people at our Pensions & Prosecco events told us they'd never checked their State Pension forecast.

That surprised me, because it's one of the easiest pieces of pension admin you can do. Your forecast tells you how much State Pension you could get, when you could get it and whether you may be able to increase it.

I've made a quick video showing you how to check yours - and what you'll see when you get there:

Why we’re reminding you
It's very easy to focus on your workplace or private pensions and forget that the State Pension could form an important part of your retirement income. Knowing what you're currently on track to receive gives you another piece of the picture.

Pensions & Prosecco says:
It only takes a few minutes and you can do it for free on GOV.UK.

We obviously LOVED hearing this!

Your pension contributions don't have to stay the same throughout your working life. There may be times when money is tight - and times when you have more room to put a little extra away.

If you're in one of those better periods, it can be worth asking: could I afford to increase my pension contributions right now?

Have you taken a step with your pension recently? We'd love to hear about it. Email us at [email protected] to tell us what's changed.

Babylonstoren Mourvèdre Rosé

Elizabeth says: If you're looking for something a little different this bank holiday, I'd encourage you to try Babylonstoren Rosé.

I recently met Danielle, one of the winemakers behind the bottle, and discovered she never actually planned to make wine at all. A university admin mix-up temporarily placed her on a wine-making degree while she waited for her exam results - and she ended up discovering the career she was meant to have.

Today, she's part of the team making wines at one of South Africa's best-known estates.

The bottle she spoke about most fondly was this rosé. Made from Mourvèdre, it has fresh strawberry and raspberry flavours, crisp acidity and a lovely dry finish. It's elegant rather than overly sweet and has just enough structure to make it a brilliant food wine.

Her favourite pairing surprised me: Eggs Royale. The wine's freshness cuts through the rich hollandaise beautifully, while the smoked salmon makes the fruit flavours really shine.

Of course, you don't need to wait until brunch. I'd happily open this with smoked salmon, prawns, crab, grilled chicken or simply as the first bottle when friends arrive for a bank holiday catch-up.

One final tip from Danielle: don't serve it straight from the fridge. Leave the bottle out for 15 minutes before pouring and you'll notice the flavours become softer, fuller and far more expressive.

South African wine continues to offer some of the best value and most exciting bottles on the shelf, and this is a lovely place to start.

That’s it for this edition.

More pension housekeeping next time. Fewer acronyms. Always something decent in your glass.

Katie & Elizabeth 🥂

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