What Changed for Pensions in April 2026?
April 2026 marks the start of the 2026/27 tax year and brings several important pension changes. From a higher State Pension to employer National Insurance adjustments following the Autumn Budget, here is everything that changed and what it means for your retirement savings.
State Pension Increase: Triple Lock Delivers £230.25/Week
The full new State Pension increased from £221.20 to £230.25 per week from April 2026 — a rise of £9.05 per week or £470.60 per year. This takes the annual full State Pension to £11,973.
The increase was determined by the triple lock, which uprates the State Pension by the highest of:
- Average earnings growth
- Consumer price inflation (CPI)
- 2.5%
Employer National Insurance Changes
Following the Autumn Budget, employer National Insurance contributions increased. The rate rose from 13.8% to 15%, and the threshold at which employers start paying NI fell from £9,100 to £5,000 per employee. While this is a cost borne by employers, it may indirectly affect:
- Salary sacrifice pension arrangements (now even more attractive for employers)
- Employer willingness to increase pension contributions
- Hiring decisions and pay rises
Frozen Tax Thresholds Continue
The Personal Allowance remains frozen at £12,570, and the higher rate threshold at £50,270. This freeze, in place since 2021/22, means more people are being pulled into higher tax brackets through fiscal drag — making pension contributions an increasingly valuable tax planning tool.
Pension Tax Relief Rates Unchanged
Tax relief on pension contributions continues at marginal rates: 20% for basic rate, 40% for higher rate, and 45% for additional rate taxpayers. With frozen thresholds, more workers are now higher rate taxpayers, meaning pension contributions offer even greater tax savings.
Annual Allowance Stays at £60,000
The Annual Allowance remains at £60,000 for 2026/27. There were no changes to the tapered Annual Allowance thresholds. High earners with adjusted income above £260,000 continue to see their allowance reduced, down to a minimum of £10,000.
Pension Dashboard Rollout Continues
The Pension Dashboard programme continues its phased rollout in 2026. More pension providers are connecting to the dashboard, which will eventually allow individuals to see all their pension savings in one place. Large providers were required to connect during 2025, with smaller providers following through 2026.
Normal Minimum Pension Age: Still 55 (Until 2028)
The normal minimum pension age remains at 55 for 2026/27. The increase to 57 is scheduled for April 2028. If you are planning to access your pension between 55 and 57, you still have a window to do so before the age rises.
How These Changes Affect Different Taxpayers
| Group | Key Impact | Action to Consider |
|---|---|---|
| Basic rate taxpayers | Frozen thresholds may push you into higher rate band | Maximise pension contributions to stay below £50,270 |
| Higher rate taxpayers | 40% tax relief on pension contributions | Use full £60,000 Annual Allowance and carry forward |
| Additional rate taxpayers | Tapered allowance may apply | Review adjusted income and plan contributions carefully |
| Retirees | Higher State Pension of £230.25/week | Review retirement income and tax position |
| Employers | Higher NI costs | Consider salary sacrifice arrangements |
Key Dates and Deadlines
- 6 April 2026: New tax year starts — new State Pension rate and thresholds apply
- 31 January 2027: Self-assessment deadline for claiming higher/additional rate pension tax relief for 2025/26
- 5 April 2027: End of 2026/27 tax year — last day to use this year's Annual Allowance
- April 2028: Minimum pension access age rises from 55 to 57