As we navigate through the financial landscape shaped by recent UK Government budgets and global market dynamics, it's useful to understand how these developments impact your RS Group Defined Benefit (DB) pension.

Budget highlights

The UK Autumn 2024 and Spring 2025 Budgets introduced several changes that will impact pensions. Here is a summary of what was included:

• Inheritance Tax on pensions: Starting from April 2027, pensions will be subject to Inheritance Tax (IHT). This means that unspent pension funds will form part of your estate and be taxed at the standard IHT rate of 40% on estates exceeding the £325,000 threshold.
• Triple Lock maintained: The Government has confirmed that the Triple Lock will continue, ensuring that the State Pension will rise each year by the highest of either price inflation (CPI), average earnings growth, or 2.5%.
• State Pension increase: From April 2025, the State Pension rose by 4.1%. This increase has brought the full State Pension up to £11,973 per annum, providing additional financial support to pensioners.

The Trustee will continue to monitor any announcements from the Government and how this may impact your pension.

Market volatility and your pension

Recent actions by the US Government, including tariff policies, have led to increased market volatility. While such fluctuations can be concerning, it's important to remember that the RS Group Pension Scheme is designed to provide stable and predictable retirement income.

How we minimise risk to your DB pension:

1. Long-term investment strategy: The RS Group Pension Scheme invests with a long-term perspective, which helps mitigate the impact of short-term market volatility.
2. Regulatory protections: UK DB pension schemes are subject to stringent regulatory oversight, ensuring they are well-funded and managed prudently.
3. Employer covenant: The sponsoring employer's commitment to funding the pension scheme provides an additional layer of security.

While the financial landscape continues to evolve, the structure and regulatory framework of your DB pension scheme are designed to protect your retirement income.

If you have any questions, please don’t hesitate to contact us.