Hello and welcome to our video on the five pension changes revealed in the latest budget announcement. Millions of pensioners are set to be affected by the major changes that were announced recently by the Chancellor as part of his financial plan for the year.
Some of the changes have already been announced in the previous Autumn Statement, but several are new revelations revealed for the first time today. Much of today's speech was focused on keeping people in work for longer in a bid to boost the economy. So, let's take a look at the five pension changes set to hit retirees.
First, the Chancellor has scrapped the lifetime allowance on pension savings in an effort to keep people in work. Around 2 million middle-class Brits will benefit from the complete scrapping of the £1 million lifetime allowance. This will allow workers to put more money into their pension pot before being taxed. In other words, it’s the maximum amount you can save into all of your pensions combined without incurring a potentially hefty tax charge.
Second, the Chancellor has revealed a £20,000 increase to the annual allowance rate for pensions. This caps the amount you can save into your private pension scheme in a tax year. The amount each person can save each year before incurring tax has been hiked from £40,000 to £60,000.