Other changes in 2016/17

Lifetime allowance reduced from £1.25m to £1m
The lifetime allowance has now been reduced to £1m. If you have accumulated over £1m in your pension you may like to think about applying for individual protection. You can find out more here.

New flat rate state pension
From April 2016, anyone reaching state pension age will receive a “flat rate”, worth £155.65 per week, depending on qualified earnings. This is £36.35 more than is currently paid on a weekly basis.

The idea is to make the state pension simpler and fairer, but figures announced by the Department of Work and Pensions (DWP) shows that the majority of people in their 20s, 30s and early 40s will be worse off as a result of the changes, with many losing thousands of pounds over their retirement.

Malcolm McLean, a former adviser to the Government and Chief Executive of The Retirement Alliance, has said “with rising house prices and lower wages and pensions, [young people] are being hammered from all angles.”

So, what can you do? It really is quite simple: start saving now!

Published on 07/04/2016