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16 March 2016

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2016 Budget – at a glance

3 things you should know from the latest Budget.

T4_T13_content - Budget
  

​Many experts have been calling for a slow-down on changes in the pensions industry – and the Chancellor appeared to listen.
 
There were only a small number of items relating to pensions in the Budget, on 16 March 2016. Here are the headlines: 
 

  • New Lifetime Isa. This new product will be launched in April 2017 and available to those aged under 40. You can save up to £4,000 a year and the government will contribute an annual 25% bonus which can be used to buy a first home or taken tax-free after age 60. The Lifetime ISA will offer some features similar to pensions ISAs. Therefore, we will have to see whether this impacts the level of pension savings for the under-40s.
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  • No change to salary sacrifice ... yet. There were rumours that salary sacrifice for pensions would be abolished. This hasn’t happened yet, but the Government is still considering it.
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  • ‘Pensions dashboard’ to launch by 2019. To help the next generation keep track of their pension savings, the government wants to introduce a pension dashboard which will show all of an individual’s retirement savings in one place.

 

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