This article is an extract from Lexology Panoramic: Pensions & Retirement Plans 2026. Click here for the full guide.

Across the world, pension systems are changing rapidly and this is reshaping retirement planning for many. Although each country is taking its own path, these systems are collectively being influenced by common pressures, including demographic ageing, economic challenges and evolving market conditions. Most of the world's pension savings are concentrated in a handful of wealthy nations with the USA holding the largest share, accounting for 65% of the world pension assets at the end of 2024.

The average normal retirement age across OECD countries is set to rise. For men and women retiring in 2024, the averages were 64.7 and 63.9 years. For individuals who begin their careers in 2024, these ages will increase to 66.4 and 65.9 years, respectively. Under current legislation, more than half of OECD countries are on track to raise their retirement ages.

Future retirement ages will vary widely but countries such as the United Kingdom, Slovenia, the Netherlands, the Czech Republic and Sweden have, for the time being, fixed on 67, whereas Denmark is moving to age 70. However, in France such measures remain highly political and their law to raise state pension age has been suspended due to its unpopularity.

Other policy reforms include Ireland, which from January 2026 has introduced automatic enrolment into occupational pension schemes, whereas Lithuania has abolished its own system and is moving to a voluntary system of pension savings.

Dutch employers have until 1 January 2028 to complete the transition to defined contribution plans, with flat‑rate contributions for all employees, replacing existing defined benefit arrangements and age‑related contribution structures. These reforms extend to every employer, even those that already provide flat‑rate defined contribution plans. At the same time, obligations relating to early retirement, particularly in sectors involving strenuous work, are receiving heightened attention.

Italy plans to boost voluntary pension fund membership by directing part of severance payments into pension schemes and updating oversight rules to encourage participation. To support the system as the population ages, the government aims to extend working lives through incentives and revised retirement criteria. It also intends to review mandatory retirement for public employees to retain skilled workers and further strengthen Italy’s auto‑enrolment framework.

The USA is also set to implement major reforms to its pension system, with the most significant being the SECURE 2.0 Act, which is being rolled out between 2025 and 2027. Key changes include mandatory auto‑enrolment for new workplace retirement plans, increased catch‑up contributions, particularly for individuals aged 60 to 63, and a requirement for higher‑income earners to make their catch‑up contributions on a Roth basis from 2026/2027.

The UK is also proposing major pension developments through the Pension Scheme Bill, which is on track to receive Royal Assent this spring. Some key changes include:

  • new rules on the use of surplus by employers in defined benefit plans - scheduled to take effect from spring 2027;
  • the introduction of guided retirement pathways for defined contribution savers - from spring 2027 for DC master trusts and from spring 2028 for all other workplace DC schemes;
  • new scale requirements for DC master trusts and group personal pension plans - taking effect from 2030;
  • the long‑awaited small pots consolidation framework - also anticipated around 2030;
  • resolution of the problems caused by the Court of Appeal’s decision in the Virgin Media case for defined benefit plans over the section 37 actuarial certificate for the modifications to the rules of a salary-related contracted-out plan regarding ‘section 9(2B) rights’. This issue has created significant challenges for many pension plans and has resulted in the auditors of some sponsoring employers qualifying the company’s accounts.

Finally, in the United Kingdom, currently, most unused pension funds and death benefits are exempt from inheritance tax (IHT). However, from 6 April 2027, many of them will instead be included in the value of the deceased’s estate for IHT purposes, significantly impacting pension plans. This change is expected to result in around 10,500 more estates paying IHT, generating an additional £1.46 billion annually by April 2030 for the Treasury. This is a major change for pension plans. The precise mechanisms for implementing this change are still being worked through.