Pension changes in April 2024 as expert urges people to 'make a claim'

There have been several changes made as the new tax year gets under way

This April, significant changes to the UK's State Pension system are taking effect, impacting millions. Chief among them is a considerable increase in the weekly amount paid to pensioners, but there are also other important things to be aware of, experts have said.

Professionals at Spencer Churchill Claims Advice have shared their expert analysis on the updates, including a 8.5% State Pension increase, the scrapping of the Pensions Lifetime Allowance (LTA), and adjustments to Pension Credit.

State Pension increase

A Spencer Churchill spokesperson said: "The 8.5% increase in State Pension payments is a welcome change for many, reflecting an attempt to align pension incomes with the rising cost of living. For individuals receiving the full new State Pension, the increase to £221.20 a week signifies a notable uplift in their regular income. However, it's crucial for pensioners to understand how this increase impacts their overall financial planning, especially considering the broader economic context of inflation."

Pension Credit increase

The spokesperson said: "The Pension Credit increase of 6.7% is particularly significant for our clients who rely on this supplement for their essential expenses. The adjustments to £218.15 a week for single claimants and £332.95 for couples are essential for maintaining the standard of living among the most vulnerable pensioners. We urge individuals who haven't yet claimed Pension Credit but are eligible to do so, as it's a valuable benefit that goes unclaimed too often."

Pensions Lifetime Allowance being scrapped

The spokesperson added: "The abolition of the Pensions Lifetime Allowance (LTA) marks a radical shift in pension savings and investment strategies. While this could potentially allow for greater savings without the worry of exceeding the £1,073,100 limit, the complexity of transitional arrangements cannot be understated. We advise all our clients, particularly those with substantial pension pots, to seek personalised advice. Understanding the tax implications and planning accordingly is crucial to maximising the benefits of this change."

State Pension top-up system delay

The experts concluded: "The delay in the launch of the new online State Pension top-up scheme may be frustrating for those looking to optimise their pension contributions. This tool is vital for understanding one's projected State Pension and identifying any gaps in National Insurance contributions. We recommend keeping a close eye on announcements regarding the tool's availability and preparing to act quickly once it's launched to ensure your State Pension reflects your full entitlement."