Autumn Budget 2026: what could it mean for you and your money?

You may be wondering what the Autumn Budget means for your pension and your money.

There are a few pension-related changes worth knowing about, including a new tax allowance for some people above State Pension age, alongside announcements affecting savings, first-time buyers and household finances.

Most of these changes don’t happen straight away, and there’s no need to make any immediate decisions about your pension because of the Budget. We’ve picked out some of the key announcements and explained what they could mean for you.

What does this mean for my pension?

There weren’t widespread changes to pension saving announced in the Budget, but there are a couple of pension-related updates worth knowing about.

One is a change to the tax rules that apply to some pension benefits after someone dies. The Government is removing an existing two-year tax rule applying to some tax-free pension and lump-sum death benefits.

The change won’t affect everyone. We’ll keep our information up to date as more detail about how it will work becomes available.

Are you receiving the State Pension?

From April 2027, the Government will introduce a new Pension Tax Allowance.

People above State Pension age whose total income is no more than the value of the full new State Pension won’t pay Income Tax because of the State Pension uprating. Some people with slightly higher incomes may also benefit through a tapered allowance.

The Government says around 500,000 pensioners will benefit in 2027/28, including around 290,000 who will pay no Income Tax because of the Pension Tax Allowance.

If you’re approaching retirement, it’s worth remembering that your State Pension could form an important part of your overall retirement income alongside your pension savings and any other income or savings you have.

Have you got money in savings?

There are changes coming to the way some savings income is taxed.

From April 2027, tax rates on savings and property income will rise by a further two percentage points across all bands.

This doesn’t necessarily mean you’ll pay more tax on your savings. How you’re affected will depend on your individual circumstances. The Government says 84% Income Tax payers will be unaffected by these changes. 

There was news about ISAs too. The Government has confirmed that the £20,000 Cash ISA limit will remain unchanged. It also plans to explore a new incentive for people investing in a Stocks and Shares ISA for the first time, although the details haven’t yet been decided.

Saving for your first home?

The Budget also included changes for first-time buyers.

The Government has announced a new First Time Buyer ISA, which is due to be introduced from April 2029. We don’t yet have the full details of how it will work.

There’s also a change to Lifetime ISAs. From 29 October 2026, the Lifetime ISA withdrawal charge will reduce to 20% for first-time buyers purchasing a home above the existing £450,000 property price cap.

A withdrawal charge will still apply, so it’s important to check the rules carefully before taking money out of a Lifetime ISA.

What about household bills?

The Budget included several measures aimed at helping with the cost of living.

In 2027, the Government plans to provide a £100 Household Energy Payment for up to 20 million households in council tax bands A to D in England. It has also said funding will be provided for similar support in the rest of the UK.

The temporary VAT cut on electricity is also being extended until 1 July 2027. The Government says this should take around £50 off the Ofgem annual price cap in April 2027.

And from 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 an hour.

Take a look at your retirement plans

Budgets can generate plenty of headlines, but your pension is about the long term.

If the Budget has prompted you to think about retirement, you can sign in to your TPT account to see your pension information and explore the planning tools available to you.

Your TPT online account lets you check your pension pot, investments and personal details, as well as access tools to help you plan for retirement.

Has the Budget got you thinking about your finances?

Join our free member webinar on Thursday 5 November at 2.30pm to 3.30pm to unpack the aspects that could affect you and your finances.

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This article is for general information only and doesn't constitute financial, legal or tax advice. It reflects our understanding of the Government's announcements on 28 October 2026 and may need to be updated as further details become available. Tax rules can change and how they affect you will depend on your individual circumstances.

If you need help understanding your options, you can get free and impartial guidance from MoneyHelper. If you need a personal recommendation, you may want to speak to a regulated financial adviser.