In the 2021 Budget, Chancellor Rishi Sunak announced that the state pension is rising by 2.5 per cent for the 2021-22 tax year, creating an increase of £228.80 for individuals.
The 2.5 per cent increase begins on 6 April 2021, and recipients who are eligible for the full amount of the new single-tier state pension will receive almost £4 more each week, from £175.20 to £179.60.
Lifetime Allowance
Additionally, the pensions Lifetime Allowance (LTA), the total amount you can save into private pensions without acquiring a substantial tax charge, will freeze at £1,073,100 until April 2026.
Throughout your working life, you can save as much as you want into your pension. But, if it exceeds the LTA, you may be hit with a lot of tax when you access the money. 
According to research, around 10,000 pension savers will exceed the limit, possibly having a tax charge of 25 per cent, which will create near £990 million for the Treasury.
Pension tax relief
However, Sunak did maintain the key pension tax relief system, despite the speculations circling pre-Budget that the Government was to make it less generous.