The Finance Act 2022 increased the minimum early pension age under occupational pension schemes from 55 to 57 with effect from 6 April 2028 (certain exceptions would apply for those with an unqualified right to retire before this age and members of uniformed public service pension schemes).
Pension dashboard
The Pensions Dashboards Regulations 2022 were approved by the parliament and came into force from 12 December 2022. The system, managed by the Pension Dashboard Programme (PDP), will provide people with the information on all their pension savings and entitlements: state, workplace and individual pensions in one place.
All FCA-regulated pension providers will need to connect to the system by the end of August 2023, with some exceptions (where the deadline was pushed back to October 2024). The proposed FCA standards would allow pension providers to offer additional services within the dashboard, such as pension advice, modelling and calculators. The consultations should be closed in the winter ahead of the final approval in government.
The Annual Allowance and Tapered Annual Allowance
From 6 April, the annual allowance will increase from £40,000 to £60,000 which is the maximum annual allowance. However, it is tapered for individuals with an adjusted income of over £120,000, and a threshold income of over £200,000. One pound of every £2 earned above an adjusted income of £260,000 will be lost, tapering down to a maximum contribution of £10,000 if adjusted earnings exceed £360,000.
The tables below simplifies and summarises the current tapered allowance compared to the previous rules. |