There’s a lot of changes ahead for retirement savings, with adjusted state pensions and pension credits, and the potential for more changes to come with a looming election and Budget on the horizon, according to Which?. For 2024, here are the confirmed pension changes set to happen and when:
State Pension: A rise is expected by 8.5%, resulting in an extra boost of £902 for those entitled to it, with a full level increase to £221.20 weekly and a basic state pension rising from £156.20 to £169.50.
Pension Credit: The amount of pension credit you are eligible for will also rise from April this year.
Lifetime Allowance: March will see the scrapping of the lifetime allowance (LTA), which currently is at £1.073m.
‘Pot for life’: A new policy ‘pot for life’ proposal will begin to take shape, allowing workers to ask their employer to pay contributions into a single pension scheme.
So what are you doing about your pension? Keep an eye on all these changes because either directly or indirectly, it’s likely to affect your financial status.
Remember, you can keep in touch with your pensions by combining them into one scheme, making tracking them easier while concrete progress on “pot for life” proposal takes shape.