UK Pension Changes 2026: State Pension Rise, Tax Updates & ISA Rules Explained

Описание: The UK Spring Budget 2026 has confirmed major changes to pensions, taxation, and savings that will directly affect millions of retirees and soon-to-be retirees. The state pension is set to rise under the triple lock, with the full new state pension reaching £241.30 per week and the full basic state pension increasing to £184.90 per week from April 2026. This is a guaranteed boost for pensioners, providing extra weekly income without any action required.

However, personal tax thresholds remain frozen until at least April 2031, creating fiscal drag that could push more pension income into taxable territory. Dividend and savings income outside tax-free accounts will face higher tax rates, while cash ISA limits for under 65s will be reduced to £12,000 annually. Over 65s retain the full £20,000 allowance, and private pensions continue to enjoy tax relief and a 25% tax-free lump sum, ensuring retirees can still maximize their retirement savings.

Future inheritance tax changes will affect pension funds passed to beneficiaries from April 2027, making early planning crucial. Retirees should review income sources, check expected pension increases, and explore tax-efficient strategies now to secure more of their money. Acting proactively ensures maximum benefit from the confirmed changes, reduces unexpected tax liabilities, and strengthens financial security for retirement.


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