Published On: Thu, Mar 28th, 2019

Pension changes 2019: Huge adjustments coming NEXT WEEK – what they mean for YOU | Personal Finance | Finance

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Millions of pensioners will enjoy a pay rise, with the state pension increasing for those who retire after April this year, as well as those who already claim state pension. How much someone will get will depend on the type of pension they are on. Women who were born before April 6, 1953, and men who were born before April 6, 1951, are entitled to the basic state pension. The current basic state pension is £125.95 a week, but this will rise by £3.25, taking the total to £129.20 a week.

This will mean retired workers who get the basic state pension will be able to enjoy an extra £169 in their pocket.

Women born after April 5, 1953, and men born after 5 April 1951, will receive the new state pension.

People who will receive the new full single-tier state pension will get an extra £4.25 a week.

So instead of receiving £164.35, retirees in this category will soon get £168.60.

Throughout the whole year, this works out at an extra £221.

Pensioners will also need to be aware of the lifetime allowance being increased.

The lifetime allowance is the overall amount of pension savings that you can have at retirement without incurring tax charges.

This will go up from £1,030,000 to £1,055,000, in line with inflation.

The annual allowance is staying put at £40,000.

The state pension age will increase for both men and women to reach 66 by October 2020, under new rules.

Anyone born between December 6, 1953 and January 6, 1954, will see their state pension age delayed by up to three months and their retirement date set at March 6, 2019.

By 2028 the state pension age will have risen to 67 and 68 by 2039.

A final change to be aware of will be an increase to automatic pension enrolment proceedings.

The rules as the stand see employers pay two percent of employee salary into the pot each month, and staff contibute three percent.

This is set to go up to three percent for employers and five percent for staff, with an overall eight percent contribution.

So both employers and staff with a pension scheme will be paying more into pension pots.

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