Pensions

State pension age

The Chancellor announced that the introduction of the planned rise of the state pension age to 67 is to be brought forward to 2026 from 2034, which is forecast to save £59 billion in the longer term. This should not affect anyone within 14 years of receiving their state pension.

State pension and pension credit

The basic state pension will rise by £5.30 to £107.45 in April 2012, which will be the largest ever cash rise in the basic state pension. To ensure that the poorest pensioners will not see a smaller rise, the Government confirmed that it would also uprate the pension credit by £5.35 in April 2012.

Asset-backed pension contributions

The Government will introduce new legislation that takes effect on 29 November 2011 to prevent employers obtaining excessive tax relief for asset-backed pension contributions to their pension schemes, but instead accurately reflects the payments made.

Pension funds and infrastructure funding

It was announced that the Government will target up to £20 billion of additional private sector investment to support UK infrastructure through a Memorandum of Understanding with two groups of UK pension funds.