Autumn Budget Statement 2024: what it means for you
At the end of October, the Chancellor Rachel Reeves gave the Autumn Statement. There are three key updates that may impact you based on what was announced. To understand what these are and how they may affect you, watch this short video:
Autumn statement 2024: What it means for you / 01:33
The Autumn statement and what it means for you. There are three key updates.
The first is that from April 2027, pensions inherited on death will be assessed for inheritance tax. In other words, if the total value of pension pots and other assets, such as property and shares, are over the inheritance tax threshold, then the pension pots will be subject to inheritance tax. Additionally, tax exemption for transfers to Qualified Recognised Overseas Pension Schemes located in Europe or Gibraltar has ended with immediate effect.
The second update concerns personal tax and National Insurance. The freeze on personal tax and National Insurance thresholds will continue but will be adjusted for inflation starting from 2028/29
The third update is that the state pension will rise by 4.1% in 2025/26, translating to around £470 increase for pensioners receiving the full state pension. From April 2025, the National Living Wage will also increase by 6.7% for those aged 21 and over, with similar raises for 18–20-year-olds and apprentices.
Remember, this rise is relating to state pensions only. Managing your pension doesn’t need to be complicated. Stay on top of yours with your online account.
Stay on top of your pension
Managing your pension doesn’t need to be complicated. With Manage Your Account and the Legal & General app, you can access your pension online, anytime, helping you take control of your money and achieve your retirement goals.
Take control and make your financial future easier.
Guidance and advice
Before you decide how and when you’d like to take your pension, you should get advice and shop around.
For free, impartial guidance
If you’re over the age of 50, free and impartial pension guidance is available from Pension Wise as part of MoneyHelper provided by the Government.
For regulated, financial advice
Search for a financial adviser that’s regulated by the Financial Conduct Authority. You can find a financial adviser at Unbiased. Advisers may charge for the advice they give.
Please note, this webpage is for information only and is not financial advice.