State Pension changes in April 2024 - what you need to know as expert urges 'make a claim'

A pensioner couple checking their finances
A State Pension rise forecast for next year will also mean a big disparity between two groups of retirees -Credit:shared content unit

Significant changes to the UK's State Pension system are set to take effect in April 2024, impacting millions of people. Among these changes is a substantial increase in the weekly amount paid to pensioners.

Experts from Spencer Churchill Claims Advice have provided their insights on the updates, which include an 8.5% State Pension increase, the abolition of the Pensions Lifetime Allowance (LTA), and modifications to Pension Credit.

State Pension increase

A spokesperson for Spencer Churchill commented: "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 stated: "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

On the topic of the 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.", reports Wales Online.

State Pension top-up system delay

The professionals stated: "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."