The Chancellor of the Exchequer Jeremy Hunt has announced the amount of money people can save in their work pension tax-free will increase by 50 per cent.

The Spring Budget outlined the latest plans for growing the UK’s economy after a tough few financial years.

It was revealed the annual tax-free pension allowance will increase from £40,000 to £60,000 each year.

The Argus:

It was also rumoured that Jeremy Hunt would increase the pension lifetime allowance from £1m to either £1.5m or £1.8m, but Mr Hunt said he will abolish the limit altogether.

It’s thought the policy will help to stop people, particularly doctors, from reducing hours or retiring early owing to tax, the BBC said.

How to check your state pension after Jeremy Hunt’s Spring Budget?

You can get a state pension forecast online from the ‘check your state pension’ service.

This provides personalised information, including your state pension age, an estimate of how much state pension you may get at that point and if you can increase this amount.

It also allows you to view your National Insurance contribution history.

What did Jeremy Hunt say about pensions in the Spring Budget?

Jeremy Hunt said he has 'listened to the concerns' of many senior NHS clinicians, who say unpredictable pension tax charges are making them leave the NHS just when they are needed the most.

He said the NHS is our 'biggest employer' and that he will shortly be publishing a long-term workforce plan that he 'promised' in the autumn statement.


Jeremy explained: "As chancellor, I have realised the issue goes wider than doctors, no one should be pushed out of the workforce for tax reasons.

"So today I will increase the pensions annual tax-free allowance by 50 per cent from £40,000 to £60,000.

"Some have also asked me to increase the lifetime allowance from its £1m limit but I’ve decided not to do that, instead I will go further and abolish the lifetime allowance.

"It is a pension tax reform that will stop over 80 per cent of NHS doctors from receiving a tax charge."