If you're saving for retirement or nearing the end of your career, or eyeing retirement or a 'handier' role :) a significant change is on the horizon that could meaningfully affect how much tax you'll pay on your pension. From 2026, the Standard Fund Threshold (SFT), the maximum value you can accumulate across all retirement benefits without triggering additional tax charge, will begin to increase for the first time in over a decade.
For many high earners and diligent savers, this represents a genuine opportunity to improve tax efficiency, reduce liabilities, and plan more strategically around when and how to access your retirement benefits. This piece aims to keep it plain English, and I hope you will learn:
• What the Standard Fund Threshold is in 2026 and why it matters
• How your pension is valued for SFT
• What tax applies if you breach it, and differences between Defined Benefit, and the rest!
• Smart planning moves before you retire
• When to get help and stop guessing
