Pensions were at the forefront of Jeremy Hunt's Budget today, with changes to the amount you can save aimed at getting older people back into work
The key changes are:
- Annual tax-free pension savings allowance increased: Currently, the most you can save tax-free into private pension pots in one tax year is £40,000. This is known as the "pensions annual allowance" and will rise to £60,000 from April 2023. You can only receive tax relief on the amount you earn, so if your earnings are lower than £60,000 from April, you'll only be entitled to tax relief up to that level.
- If you've accessed your pension, the amount you are allowed to pay back into it will rise: If you start to take money from a defined contribution pension, the amount you can pay into your pensions and still get tax relief on is currently £4,000 a year. However, it will rise to £10,000 a year from April 2023.
