2018 Autumn Budget
Pensions and savings takeaways
Chancellor Philip Hammond has delivered the 2018 Autumn Budget and you can view the full Budget Red Book here.
We’ve summarised the main points for pensions and savings:
- The lifetime allowance for pension savings will increase to £1,055,000, in line with CPI, for 2019-20
- The band of savings income that is subject to the 0% starting rate will be kept at its current level of £5,000 for 2019-20
- The adult ISA annual subscription limit for 2019-20 will remain unchanged at £20,000. The annual subscription limit for Junior ISAs for 2019-20 will increase in line with CPI to £4,368
- The Government will publish a consultation in 2019 on draft regulations for maturing Child Trust Fund accounts. The annual subscription limit for Child Trust Funds for 2019-20 will increase in line with CPI to £4,368
- Pension fund investment in patient capital:
- The Government will support pension funds to invest in growing UK businesses through the British Business Bank
- The FCA will publish a discussion paper by the end of 2018 to explore how the UK’s existing fund regime enables investment
- In 2019, the Department for Work and Pensions (DWP) will consult on the function of the pensions charge cap to ensure that it does not restrict the use of performance fees within default pension schemes, while maintaining member protections
- The FCA will consult by the end of 2018 on updating the permitted links framework to allow unit-linked pension funds to invest in an appropriate range of patient capital assets.
- Legislation will be implemented to make pensions cold calling illegal. The Government’s response to a consultation on the matter was published on 29 October 2018
- The DWP will consult later this year on the design possibilities for Pensions Dashboards. £5m has been made available to enable the DWP to work with the pensions industry and FinTech firms
- The DWP will publish a paper setting out the Government’s approach to increasing pension participation among the self-employed.
For insights and analysis relating to pensions and the wider retirement landscape, visit our Technical matters area.
This article provides information and does not constitute financial advice, tax advice or legal advice, or provide any recommendations. The value of benefits depends on individual circumstances. Withdrawals from a pension will not normally be possible until age 55. Different options may have different effects for tax purposes, different implications for pension provision and different impacts on other assets and financial planning. The value of investments can go down as well as up so you may not get back the amount you invest. The value of tax savings and eligibility to invest in an ISA depend on personal circumstances. All tax rules may change in the future.