There are plenty of pension changes coming up that retirement savers should be aware of.
From another expected rise in the state pension age, to a crucial deadline that could boost your income in later life, we explain everything you need to know.
It comes after new research from the Department for Work and Pensions (DWP) found 12.5million working age Brits are not saving enough for their retirement.
Most people are entitled to the state pension but it is important not to rely just on this in later life.
This means the sooner you can start putting cash away for your golden years, the better lifestyle you’ll have.
State pension payments to rise next month
The state pension is rising by 10.1% from next month after the Government reinstated the triple lock.
The triple lock promise guarantees the state pension goes up by the highest out of average earnings, Consumer Price Index (CPI) inflation and 2.5%.
The full state pension will rise from £185.15 to £203.85 per week from April 10, while the basic state pension will increase from £141.85 per week to £156.20 per week.
Deadline to boost NI contributions pushed back
Most people need 35 years on their National Insurance record to claim the full new state pension, and ten years to get anything at all.
Under current rules, you can buy National Insurance contributions dating back to 2006 to fill any gaps in your record and boost your retirement cash.
But after July 31, you'll only be able to top up your National Insurance record from the previous six tax years.
The deadline was previously April 5 but has just been extended.
Not everyone will benefit from purchasing National Insurance contributions, and some people can plug gaps in their record for free.
See the Gov.uk National Insurance credits page for more information.
Contact the free Future Pension Centre on 0800 731 0175 first to check if you should purchase any National Insurance contributions, or the free Pension Service on 0800 731 0469 if you're already at state pension age.
State pension age timetable brought forward?
The current state pension age for women and men retiring now is 66, but it will rise to 67 between 2026 and 2028.
A further increase to 68 was not due to happen until between 2044 and 2046.
However, a review released in 2017 called for this to be brought forward to between 2037 and 2039.
There are rumours that the increase to 68 may be brought forward beyond what the last review suggested.
Industry experts have speculated that Chancellor Jeremy Hunt could bring it forward to between 2034 and 2036, in his Budget next week.
Pension lifetime allowance to be raised?
The lifetime allowance is the total amount you can build up in all your pension savings without incurring an extra tax charge.
The figure for most people is £1,073,100 but reports suggest the Chancellor will increase this threshold next week in the Budget.
The rate of tax you pay on pension savings above your lifetime allowance is 55% if you get it as a lump sum, or 25% if you get it any other way.
Reports suggest the £40,000 cap on annual pension contributions will also be raised. The Treasury has not commented on the speculation.
The lifetime allowance has been frozen since 2020.
Pensions dashboard delayed
The Government this month confirmed the timetable for its pensions dashboards will be delayed.
In a written statement, work and pensions minister Laura Trott said the Department for Work and Pensions (DWP) needs “additional time” to set up the long-awaited project.
Pensions dashboards will allow people to see all their pension pots in one place, so they can more easily plan for their retirement.
This is important, as the average Brit changes jobs 11 times throughout their working life - meaning it is easy to lose track of your pensions.
Pension schemes were due to start connecting to dashboards from August 31, with dashboards to then be made available to the public next year.
Auto-enrolment age to be lowered?
Auto-enrolment is where you're automatically placed into your employer’s workplace pension scheme.
To be auto-enrolled, you must be between the age of 22 and the state pension age, and earn above £10,000.
But there are proposals to lower the age limit for when you can be auto-enrolled from 22 to 18.
The lower earnings limit - the point from which your earnings are used to calculate the amount of pension contributions that will be paid into a scheme - is currently set at £6,240.
This would also be abolished as part of the proposals, which have now been backed by the Department for Work and Pensions (DWP).
